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MAY-JUNE 2020       TAP TIMES          -4-


                   Silicon Valley (from 3)


        Chips on their Minds?
        It is likely the Chinese hierarchy in 1972,
        including the scientists, had few if any
        thoughts about establishing a semiconduc-
        tor empire.


        The new oil
        But now, some 48 years after Nixon’s visit,
        China is all about semiconductors.  They
        realize that semiconductors represent the
        new oil for the world and are acting ac-
        cordingly.
























        Santa Clara County, about an hour’s drive south of San
        Francisco, is the heart of Silicon Valley with tech hotspots
        Fremont, Milpitas, Mountain View, Palo Alto, Santa Clara,
        Sunnyvale and San Jose.

        In 1985, nearly 35 years ago, China was
        far down on our list of trade partners with
        imports of only $3,861 billion, represent-
        ing a balance of payments favoring them
        by only $6 billion.


        My, how things change!
        Today, the story is quite different.  Now
        our second largest importer after Canada,
        China’s 2019 balance of payments was
        over $345 billion in their favor.


        That is, however, slightly improved over
        2018, which posted a trade deficit for the
        U.S. of $419.2 billion. next page
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