Re: Trying to outrun the bear or drawing a cat trying to represent a tiger? Could it happen for Super Photonics?
posted on
Mar 01, 2023 01:03PM
China is now considering increasing their support to Russia in regards to Putin's "Special Military Operation" against Ukraine. It may or may not happen, but one of the factors being taken into consideration by President Xi Jinping and the CCP will be the counter effect that would occur should they significantly up the ante by providing major military hardware to Putin.
What would be the response of the West in such a situation? Obviously, trade sanctions against Chine would increase in such a situation and Chinese companies doing business with the West would be adversely affected by the limitations imposed on that international trade.
Below is a paragraph from an article published in the Daily Beast regarding speculation on that very scenario. OK, OK... it is from "the Daily Beast", but putting that point aside the selected paragraph has value in its prognostication IF the situation should arise whereby President Xi does decide to start shipping heavy duty military hardware to China and the West responded:
"China hasn’t yet decided whether to go through with supporting Russia, and there are a few reasons against it. Beijing has a lot to lose if the U.S. and other supporters of Ukraine start to apply the same kinds of financial and diplomatic penalties they’ve issued to Russian and Iranian companies. Major Chinese tech companies benefit from access to international markets, and would be deeply harmed by sanctions if they are involved in sales or support to Russia."
Sounds like a good argument for China to refrain from such an action considering the cost to any or even all Chinese companies involved in international trade, especially to Chinese "Tech" companies, such as Susper Photonics? So it probably won't happen, but it is definitely an issue to keep cognizant about by Western investors in such companies.
My own opinion, and that is all it is, is that the mere fact of this possible limitation in the future on Chinese "Tech company" international trade and its subjugation to the whims of international political vicissitudes serves as an additional reason for POET Technologies to revisit with added emphasis the notion of establishing a North American manufacturing base, either in Canada or in the United States. OK, POET doesn't exactly have alll of its eggs in one basket, but it has enough of its eggs in the Chinese basket to consider what would be the effect if those eggs were damaged or destroyed by international trade limitations.
Just something to keep watch about, should China decide to support Putin more vigorously. A decision that may be tied to how much vigor the West decides to use in its own support of Taiwan?
Life is sure complicated sometimes, eh?
The original article: https://news.yahoo.com/whispers-putin-secret-lifeline-threaten-094058418.html