Elon Musk & China's World War 3.

now we're going to talk China what was

just said about Elon musk's relation to

China after what was just said about

Elon musk's relation to China let's take

a look and comment on do we think that's

potentially true then let's move into

how is China actually competing with the

United States and is it something that

we should be concerned about let's go

ahead and get started with this clip now

this clip is a Twitter clip and it is uh

it's a

it's Steve Bannon whom Elon Musk replied

to this comment here by him and

suggested oh I used to think Steve

Bannon was a smart but evil person now I

think he's just evil essentially right

so let's go ahead and jump into uh what

Steve Bannon says right here when the

question is asked should Elon Musk get

into maybe helping bail out Silicon

Valley Bank or what is Elon musk's

exposure on the world stage and how does

it relate to China ready for this here

we go

what would you think about that if I

mean I think until Elon Musk starts

letting back on the most uh the true

anti-ccp people that he keeps blocked

off there myself includes not that I

want to go on there oh yeah no no he's

owned it but he's owned by the Chinese

Communist Party what are you talking

about Tesla is only sense of the only

thing of real value is Tesla he uses it

for margin loans he sells the stock the

Shanghai joint venture is a hundred

percent controlled by the CCP this is

why this is why he never goes after the

CCP this is why he always backs off this

is when they had the protest they had

the protests about the lockdowns of

covet he well he will not do it Elon

Musk is a total and complete phony he is

in bed in a business party he's done

some good stuff of letting stuff out uh

you know we'll tell you being others

it's fine but he is owned Lock Stock and

Barrel by the Chinese Communist party

and he acts like it well there was a

story basically that they warned him to

stop talking about lab leak 100 he's got

and he I think there's they want him to

take down the tweets he did the first

time now he didn't take them down but

you notice he didn't have any more up

there after that and I wonder if he said

okay I won't tweet more about it but

here's the issue I see with the CCP in

the United States and if the United

States falter is if his foreign

there's another thing they're already

talking about we think it'll be up to a

third of those those Innovative

companies maybe CCP

foreign there you have it well so what

do we think about that well Elon Musk is

is it to some degree not wrong in that

he wants to expand his manufacturing in

China as much as possible in fact he'd

like to double the size of gega Shanghai

is it potentially true then that Elon

Musk is uninterested in criticizing

China

yes however China has the equal position

opposite but equal China through this uh

they've they've got multiple propaganda

newspapers but regularly talks up how

Elon Musk is actually an example of the

type of entrepreneur that they want to

encourage in China China wants to

encourage more Elon Musk style folks in

China so is it possible that Elon Musk

doesn't want to criticize China

absolutely because ultimately he'd like

to expand Giga Shanghai it's the most

profitable Factory Tesla has right now

would it make sense from the future

potentially Elon Musk to have more

factories in China yes is it likely

maybe not soon because right now it

seems like more of a preference is being

put on countries like uh Mexico because

of the inflation reduction act and North

American production more incentivized

but potentially also India and Taiwan in

the future or Vietnam Indonesia these

these countries but potentially being

better opportunities and a tool for

diversifying away from China especially

in the time where the U.S government is

extremely critical of China but not just

critical of China but also potentially

forcing their hand in terms of

innovation and now this is something

that I think is very interesting look at

this okay this is a piece by the Foreign

Affairs this is a fantastic magazine by

the way and what they talk about I'm

going to sum up some of it here because

it's quite long but what they talk about

is how back when uh Apple started making

iPhones in China China was basically

known for super cheap labor and they

they really were known more for

producing toys like Barbies or Legos or

Mattel toys or whatever then they were

actually known for

hate technological highly

technologically advanced processes right

because it's not just like think about

the iPhone it's not just a matter of

making the chips it's also making sure

the chips are assembled correctly

together but then also testing the chips

see I think a lot of people forget that

look China just stole patented

technology and Trade Secrets these are

U.S Trade Secrets uh or us related Trade

Secrets From asml to create Advanced

lithography machines so that China can

create their own three millimeter chips

or nanometer chips rather and and create

Advanced chips that Nvidia and AMD and

the US government are already making

Taiwan semiconductors right

the problem is it's not just as easy as

having the machine if you bought a three

nanometer chip making machine and set it

up you would be no closer to being able

to make chips as you were before having

that machine because it's not just a

matter of plugging in and running it

it's actually not only having the

supplier contacts but once you run the

machine actually being able to assemble

what you're putting together and then

checking to see if it works the checking

part the rigorous checking is something

that is a very intense process that

could take sometimes 50 to 100

additional steps so the machine is just

one Cog in the wheel and China has to re

basically innovate to come up with all

of those processes to make sure they're

actually able to create quality products

and the United States government is

trying to prevent them from getting

their hands on these sort of advanced

chipping making Technologies but what's

really fascinating is China back in the

day used to be really not that great at

solar panel production and much like

back when they just started making the

iPhone they weren't that great at

engineering but now all of a sudden

they're getting into Quantum Computing

they're getting into artificial

intelligence you have quantum computers

that potentially can now start hacking

into uh I think it's a sha256 encryption

which is very important for cryptography

yes that means crypto password

protection right but not only that take

a look at this when China was forced and

this is by the Foreign Affairs here when

China was forced to actually innovate

rather than solely become a producer for

goods for America what ended up

happening well not only did they come up

with companies like Tick Tock which are

taking away a lot of user viewership

from companies like Facebook but they

also dominated the Solar Supply Chain

listen to this paragraph right here in

2010 China State Council the central

government's executive branch designated

solar power generation as a strategic

emerging business so in other words very

important business triggering a Cascade

of government subsidies and business

creation much of it aimed at expanding

manufacturing capacity in the process

Chinese firms learned the basics of

solar Volta photovoltaics and began to

improve on existing methods today

Chinese firms dominate almost every

single segment of the solar value chain

from processing poly silicon used in

solar cells to assembling solar panels

but not only do they dominating actually

making solar panels now listen to this

they have also Advanced the technology

itself Chinese solar panels are not only

the cheapest on the market they are also

the most efficient the breathtaking

decline in solar costs over the past

decade has been driven by manufacturing

Innovations in China now not only do you

have these solar Innovations but you've

got the largest battery manufacturer in

the world catl supplying a ton of

batteries to companies like Tesla in

fact catl is probably the reason why

Tesla all of a sudden is able to sell

Power walls on their website and people

can now without buying a whole solar

system buy home battery backup systems

directly from Tesla tesla.com

by and listen to this by showering

subsidies on the newcomers the Chinese

government has encouraged many firms to

enter the field and it has provoked

greater entrepreneurial risk taking

creating a brutally competitive industry

in which the strong muscled out the weak

as a result Chinese firms today dominate

the Strategic industry that the rest of

the world depends on solar panels the

approach was promoting manufacturing to

the point of excess capacity which is in

sharp contrast to economic Orthodoxy in

much of the West in other words let's

throw so much money at the problem that

even if you have a bunch of businesses

fail you're going to get to excess

capacity and massively bring the costs

down and now will be dominant in that

space

well the same thing that happened with

China for chips is or for solar panels

and batteries to some extent is now

happening with China

for chips so you do not want to count

out China now there are problems with

China China for example is starting to

spread its influence more right they've

got their eyes on the Middle East

Ukraine Russia war is showing them that

they're trying to remain neutral while

potentially supplying weapons to Russia

because after all if the U.S can supply

weapons to to Ukraine why can't China

support its uh manufacturing industry

its military industrial complex and

Supply weapons to Russia on the other

side just like what North Korea is doing

they're kind of creating these almost

World War III style axes right the U.S

Western Europe Ukraine on the other side

Iran North Korea China uh and uh and

Russia it's kind of scary now there's

this idea that these these subsidy races

might end up being won by China that

there will be a limit to how much

political willpower we will have in the

United States and then the Eurozone to

actually support chip making in the

chips industry whereas China guess what

Jinping has been saying while at the

same time he has been very critical of

Joe Biden and Wall Street Journal just

had a big piece on how Joe Biden was

directly rebuked by Xi Jinping well that

sort of criticism is happening and Z is

making it very clear that it almost

feels as though uh the the West is sort

of uniting and trying to fight against

uh China what else are they saying at

the same time well they're coming out

and saying hey you know what

we are going to focus on capitalism yeah

that's pretty remarkable XI jinping's

speech at the end of last year was

focused on look we still love socialism

but we really like capitalism don't

worry we like socialism but when

capitalism is good it's kind of like

I've made this analogy before so sorry

to sound redundant but I feel like

they've kind of like they're like oh

what's this white powder oh that's

cocaine oh I want some more of that

right

so now you have China becoming this big

player in not only the Middle East but

also potentially India which is where

United States companies are trying to go

but what if China is a big player over

there now as well so you're seeing this

expansion while at the same time

tensions are increasing between the U.S

and China you're seeing China not only

shower their manufacturing industry with

more but you're seeing this power

struggle expand and The Tick Tock bill

doesn't help we just introduced a Bill

in Congress that would potentially Force

the sale of tick tock so that way we

could keep data here in America rather

than potentially have our personal

contacts and our data go over to Chinese

servers

American Tick Tock data has already been

found on Asian servers in Asia somebody

can walk in take the hard drive I mean

obviously hopefully they're encrypted

but who knows if they actually are but

anyway uh China selling weapons to

Russia is now widely seen as this sort

of quote unquote we don't give a damn

attitude like Biden ain't the best of

the boss of us right you've got really

this uh Xi Jinping argument that the US

is trying to contain China and that it's

not fair and as a result they're almost

sort of lashing out to expand even

faster I mean think about it the U.S

chips act restricts Taiwan

semiconductors from selling Advanced

chips to China asml is restricted from

selling Advanced chip making machines to

China they can only sell the old crap

that's the last generation stuff the US

visiting Taiwan doesn't help and now

potentially Taiwanese uh uh exactly well

dare I say Executives Taiwanese

officials are going to come to America

to meet with Kevin McCarthy much like

Nancy Pelosi met with them uh in uh in

August the US is also rejecting China's

12 point peace plan for the Russia

Ukraine disaster we've gone through that

peace plan it's actually

somewhat reasonable like China is trying

to come up with a negotiated solution

and at least they're trying to negotiate

I have to give China credit for that at

least they're trying whether it's an

Earnest or not at least it seems like

they're trying at the same time China is

ramping up their military especially in

the South China Sea and you're getting

more and more islands that are becoming

weaponized uh by China whether that's

with surface-to-air missile defense

units or sort of radio towers that

you're seeing built up I mean these are

propping up all over in the South China

Sea and it's making people more and more

nervous and so really what you have is

potentially this big psychological

warfare where where the US is kind of

getting more and more nervous about

China especially since they've got three

to four times our population you know it

doesn't take their per capita income

going up that much for us to have this

pivot point where China's all of a

sudden larger than the United States on

an economic basis and then you wonder

what does that mean for the dollar in

the future

there are a lot of things to consider

but look is it unreasonable to say that

oh Elon Musk is somehow like a you know

China shill and he doesn't criticize

China

um maybe not but then again does it make

sense that corporations are kind of like

look we don't want to get in the

politics we just want to manufacture our

goods and provide our services and we

want to do that for as many people as

possible so as businesses we can make

more money it's totally fair so do I

think uh Elon for example is bought out

as Bannon says by China no do I think it

makes sense to be friendly with China

when they have the power to potentially

subsidize your manufacturing way more

than the United States does again

remember we have gridlock in America

what do you have in China not gridlock

right vastly different government system

so my big takeaway of all of this is you

can't bet against China right now I know

there are always world war three fears I

think that's relatively unlikely but

then again it could be wrong about this

obviously we want I keep paying

attention to it but this Foreign Affairs

piece on China and and the solar panels

really woke me up to this idea that oh

my gosh they have an unlimited and

uncanny ability that if they want to be

really good at something

they can throw all the money in the

world at it we can't do that in America

and we have fewer people so we have many

disadvantages compared to China and I

actually think you're seeing a little

bit of a lash out in the United States

and and these sort of sanctions and

restrictions on China are actually just

forcing China to get better and stronger

so we're shooting ourselves in the foot

it's like we're trying to like make

ourselves feel good now but we're

punishing ourselves in the future so

it's not great but it's definitely going

to be something we've got to pay

attention to