2025 Issue 29

Rob Atkinson, the Director of the Information Technology and Innovation Foundation, calls on American policymakers to set aside their aversion to state intervention in the economy to deal with the harms imposed by the PRC.

Economic prospects for Chinese citizens continue to dim as deflation, pay cuts, and poor government policy undercut growth and prosperity.

In what appears like a unilateral retreat, the Trump Administration reversed course on restrictions of certain AI chips to the PRC after successfully lobbying by Nvidia’s CEO to President Trump.  Nvidia appears intent on expanding its chip sales in China which will accelerate PRC AI development for both economic and national security purposes.

As the White House dropped these restrictions to help boost Nvidia’s sales, the PRC Government tightened its restrictions on battery technology, rare earth elements, the Panama port deal, and imposed an exit ban on a banker from Wells Fargo.  This just seems to prove the adage that showing weakness to the Chinese Communist Party simply invites more aggressive behavior.