Republicans Have to Stop Trump in the Destruction of the US Semiconductor Industry

By: Fiorenzo Arcadi & Mike Ambrozwics

I think American corporate philosophy is based on a social contract that adheres to individual protection and the sovereign right of Corporate America to establish growth. When the President of the United States decides to argue with himself and ignore the conciliatory aspect of dealing with nations that they trade with then you can be sure all hell will break loose. Perhaps we are dealing with a President that ignores the economic confidence that sustains not only the stock market, but the American economy as a whole that lifts the spirits of all nations under one roof. The President of the United States is not referred to as a king nor can he commission himself to believe that amenable partners able to grow the US economy are enemies or traitors simply because they trade with them.

So now key Republican senators decided to rip Trump’s administration for bailing out farmers in the tune of $12 billion. There was every indication that Trump would make good on the farmers conducting business in the Rust Belt of America comprised of mainly agriculture. On the one hand Trump believes in capitalism, yet by the same token he wants the Republican Party to embrace socialism and direct taxpayer money to fix his bumbling and ill-conceived bluff with China. China made it known to the rest of the world that they will retaliate against the US dollar for dollar even if they have to devalue their currency further. Chinese industries are more centralized and are able to move quickly, adapt new markets, and sustain hundreds of billions of dollars in the printing of money to sustain their economy.

Trump is so discombobulated in his own problems with all the affairs he had to pay off, his continual lies to keep him afloat, and his deteriorating economic base of the working class. It is one thing to tell the world you did not have an affair and it’s an entirely different aspect in terms of leadership to simply ruin a country because his wife found out that he was a cheater and a liar. Why does the US auto industry, the US semiconductor industry, and the US agricultural industry have to suffer because of Donald Trump’s indiscretions? When a rat is caught cheating there’s so much a wife can say to him. He may behave bombastic but the logical mathematical conclusion is that he wants to destroy the US economy because of his wife.

The US semiconductor industry leads in the production of semiconductors and semiconductor manufacturing equipment worldwide with about 47% share of the global market. Additionally, over 80% of US semiconductor sales take place outside of the US due to high volumes of exports. In fact, the semiconductor industry’s employment multiplier figure is higher than any other industry in the US including construction, communications, automotive, and many others.

I get it, the US and China can not afford to be weak. However, if the negotiating aspect of China is to open up their economy to have more US goods available for purchase by China’s domestic economy then the logical conclusion should be a trade compromise that creates a sustainable economic force between two countries. If the semiconductor industry is transnational and integrated with respect to innovation then it can successfully catapult both economies into the economic sphere of influence not only to grow, but to broaden its sales force to influence American job creation and economic growth.

Trump has to come to terms with innovation theft rather than disrupting the growth of the semiconductor industry. The real policy initiatives in terms of growth is to strengthen America’s national security and global competitiveness without China’s constrained policy of embracing innovation as a tentacle to US dominance. A rising power believes in itself by establishing policies involving China purchasing domestically-made products. It’s hard for the US to negotiate with China that Chinese citizens shouldn't buy Chinese products whereby at the same time Trump advocates products made in the USA. This is one initiative that China will not capitulate to nor will succumb to US dominance.

China’s minister of finance Liu Kun indicated that China plans to open up further, provide key driving forces in propelling global economic growth, and promote high-quality development. China’s fiscal policies are mimicking exactly what the US has done in the facilitation of technology transfers to developing countries. If China is liberalizing their economy and reforming their policies then we can be sure China is ready to conduct business with the world as a rising nation.

If Trump decides to synchronize his own well-being as his own personification of himself then he will disrupt the semiconductor industry and literally destroy the asset base that has been built upon the multitude of companies and investment in the Asia Pacific region. Trump needs to watch his negotiating tactics because at this point in time China wants to ameliorate the trade dispute with the US. Xi Jinping has a great deal of respect for Donald Trump, but that respect will not go any further unless Trump respects the Chinese citizen that became an extended workforce to American greatness.

If Trump really wants to destroy America then his only option is to destroy the semiconductor industry. That in itself will drive innovation backwards not as a compromising aspect for growth, but as a deleterious feat that destroys the survival of the fittest. The billions that Trump has to give American farmers will pale in comparison if he in fact implodes the semiconductor industry. One Republican stated that Trump has too much power; if this is true then Republicans must step in and take control of Donald Trump. Some of my Republican friends connected to me on LinkedIn told me that Trump is beginning to feel isolated and alone and barely talks to his wife. What do I have to say about this? First of all, a President should not destroy people's or company's livelihoods. Frankly, Trump should really get a firm grasp of what's going on. If Trump's wife wants nothing to do with him then he should respect American jobs as his wife has nothing to do with farmers or the semiconductor industry. Get a grip Trump!