What I read this week

The new imperialism, the risks of 'shadow banking', and the death of the internet via AI slop...

Books

Nations Rallied To Stop the 1970s Oil Crisis. It’s Time To Do The Same For Critical Minerals – Time Magazine

This article is a big warning to any nation in the global south with valuable natural resources: the empire is coming for you. The author argues that the US and its allies began building up strategic petroleum reserves in response to the 1973 oil price spike, and they need to start doing the same for critical minerals like lithium – minerals required for ‘power grids, batteries… AI chips, jet engines, and defence applications.’ The author attempts to defend the rush for critical minerals in progressive terms, arguing that a sudden shortage would disrupt manufacturing, leading to job losses. But the real concern among US elites is to protect the empire against the threat from China. The author points out:

“For a remarkable 19 out of the 20 most important strategic minerals the IEA tracks closely—including gallium, graphite and rare earths—China is the leading refiner, with an average market share of 70%.”

Politicians from both major political parties are terrified of China’s stranglehold over rare earth metals. That’s why Trump threatened to invade Greenland, and why he’s been so keen to get privileged access to Ukraine’s natural resource deposits. Trump frames his concerns in more blatantly imperialist terms: this is about ensuring America’s ‘greatness’. The Dems argue they care about jobs and economic growth. But both parties are concerned primarily about maintaining the US’ position at the apex of global capitalism – and this requires waging economic war on China, and ‘couping’ any foreign government that gets in the way (as Elon Musk memorably put it). But they know they can’t do this while China controls so many critical natural resources. With the US on the prowl, global South nations need a hefty dose of what Thea Riofrancos calls ‘resource nationalism’ if they are to defend themselves.

China launches customs crackdown on Nvidia AI chips – The Financial Times

Speaking of a trade war, China is stepping up attempts to wean Chinese tech manufacturers of US chips. The CCP is currently imposing crackdowns on imports of Nvidia chips, in a bid to “wean the country’s technology companies away from US products”, as the FT puts it. At the same time, it’s channelling investment into domestic chipmakers to try to build up the industry. This is bad news for Nvidia – but the long-term implications are much more significant.