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China Jockeys for Better Access to US Deals · THE DAILY BRIEF

• 0:00
  Speaker 1: The idea is basic. After a decade or more of
• 0:03
  Speaker 1: China not being able to put money into this economy
• 0:06
  Speaker 1: here in the United States, Bloomberg's reporting that its tactic
• 0:10
  Speaker 1: is now to say to the US government, reduce technology
• 0:14
  Speaker 1: restrictions in particular. And that's what might happen is somebody
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  Speaker 1: covering the sector your reaction.
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  Speaker 2: I think this goes back to a decision by the
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  Speaker 2: Biden administration of restricting semicap equipment below fourteen nanimeters almost
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  Speaker 2: a year a year and a half ago.
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  Speaker 3: And if you really look through that report.
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  Speaker 2: And how it's transitioning to the Chinese government, they can't
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  Speaker 2: manufacture and this is amat lamb, Clack, etc.
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  Speaker 3: In ASML.
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  Speaker 2: They can't manage manufacture next generation AI chips if they
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  Speaker 2: can't get to that three and two nanimeter node. At
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  Speaker 2: the two nanimeter node where TSM is going right now,
• 0:57
  Speaker 2: the architectures are changing to gate all around and backside power.
• 1:02
  Speaker 2: I think that's really important as you relate to next
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  Speaker 2: generation AI architecture.
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  Speaker 3: So they can't get there. So if they're willing to bargain.
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  Speaker 2: Away that technology transfer and in return open up the
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  Speaker 2: spicketts of investment, not only agriculturally potentially, but also manufacturing.
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  Speaker 2: It really is a huge game changer of have how
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  Speaker 2: we have been positioned in the last two years.
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  Speaker 4: Ted therefore positioning just from an investor perspective, do we
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  Speaker 4: get even higher valuations because there's money coming in and
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  Speaker 4: then in video and all the others. KLA, for example,
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  Speaker 4: Anadeed aim At, which we're seeing under pressure today because
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  Speaker 4: the six hundred million dollar revenue hit, they're going to
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  Speaker 4: be feeling by yet more restrictions on their equipment. Going
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  Speaker 4: to China. Does that infloat ever further.
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  Speaker 2: It throws a bunch of gasoline on the fire because
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  Speaker 2: if you look at China, they're probably one of the
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  Speaker 2: largest wealth there's the second largest economy in the world,
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  Speaker 2: and next to the US on AI they're probably the
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  Speaker 2: number two position. If you don't transition to this next
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  Speaker 2: JENNYI architecture, whether it be a Gentic or where we're going,
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  Speaker 2: you know, just take Open Eye as a benchmark, you
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  Speaker 2: risk not only your sovereign economy, but more importantly your.
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  Speaker 3: Sovereign defense ability.
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  Speaker 2: Because we are pivoting in the US so quickly on
• 2:29
  Speaker 2: the defense side to AI. It's a dual discussion. I
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  Speaker 2: think the other issue is one of geo exposures. Right now,
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  Speaker 2: the street has really shied its shied itself away from
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  Speaker 2: anything with I would say over ten percent China exposures because.
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  Speaker 3: Look at Amail last night.
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  Speaker 2: Everybody's gotten bid that would totally open up the open
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  Speaker 2: up the investment.
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  Speaker 3: Angle for all those China exposures.
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  Speaker 2: And right now the large are probably lamb aim At
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  Speaker 2: and Claque at about thirty percent exposures they would have
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  Speaker 2: that would take away the bear argument.
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  Speaker 1: Ted whether you meant to or not, you are talking
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  Speaker 1: about the three biggest stories of the day. Bloomberg reporting
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  Speaker 1: that if you take a part Juawei's assend it has
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  Speaker 1: Sam Summon s k Heinitz in it, the disclosure about
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  Speaker 1: applied materials. Do you see a change of US policy
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  Speaker 1: coming or not?
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  Speaker 2: I just you know, I go back and look what
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  Speaker 2: the Trump administration did to the Middle East. You know,
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  Speaker 2: who would have thought that we would open up all
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  Speaker 2: the AI technology to Saudi Arabian others?
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  Speaker 3: I think in reply to lower oil prices. This is
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  Speaker 3: the art of the deal.
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  Speaker 2: And right now we're playing chess on four levels and
• 3:46
  Speaker 2: it's very hard for at least the tech investors to decipher,
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  Speaker 2: but it would pour a lot of gasoline on the bonfire.