Lecture on US-China Trade War and Technological Competition

Overview

• US-China Relationship: Not just affecting these two nations but also impacting the global economy.
• Tensions Escalating: Trade war with potential global economic implications.

US Political Stance

• Donald Trump's Claims: Imposing heavy tariffs on China.
• Republican Senators: Marco Rubio, Josh Holly, Tom Cotton pushing against China.
• Elon Musk's Influence: Ties with China due to Tesla's Shanghai plant which caters to a significant portion of EV sales.

European Context

• Battery Manufacturing: Europe's attempt to reduce reliance on China failing.
  • Northvolt AB's struggles leading to bankruptcy protection.
  • Chinese dominance in battery technology and production.
• Chinese Advantage: 80% of the world's lithium-ion batteries from China; home to major battery manufacturers.
• Strategic Collaborations: Europe seeking joint ventures with Chinese companies like CATL.

Rare Earth Minerals and US Military Implications

• China's Secret Weapon: Control over critical rare earth minerals.
• US Sanctions and China's Response: Restricting exports of minerals crucial for defense and technology.
• F-35 Fighter Jet Issues: Dependence on Chinese rare earth materials.

US Economic and Political Challenges

• US Public Sentiment: Feeling pessimistic and divided.
• Trump's Campaign Promises: Targeting China and migrants as economic threats.
• Manufacturing and Innovation Needs: Emphasis on internal innovation instead of decoupling from China.

Technological Competition and AI

• Huawei's Resilience: Overcoming US sanctions and advancing in tech.
• AI Development: Importance of leading in AI technology.
  • Former Google CEO Eric Schmidt: US lagging in AI compared to China.

Investment Highlight: POET Technologies

• AI & Microchip Industry: POET’s innovation in optical technology.
• Stock Performance: Significant growth and potential in AI markets.
• Partnerships: Collaborations with key tech players like Luxshare Tech and Foxconn.
• Market Potential: AI industry's growth expectations and POET’s strategic position.

Conclusion

• Future Outlook: Need for US to focus on innovation and collaboration rather than isolation.
• Investment Opportunities: Sectors like AI presenting significant growth potential.