Tomorrow’s naval blockade showdown
How will China react?
Ashes of Pompeii | April 12, 2026
Apparently tomorrow morning, April 13, at 10 a.m. ET the blockade of Iran’s ports by the US will begin. Make no mistake, this is primarily pointed at Iran’s trade with China. The Trump team seem to still think they can kill two birds with one stone – bring down the Islamic Republic and also economically weaken China. In this article I will focus on China, in particular, one aspect of the US/China relationship that gets little attention but which can be a “nuclear bomb” for China. Much discussion in the US about the boom in data center construction, but far less discussion of the total reliance on Chiina for these builds.
It has been estimated by multiple sources that literally all of the US growth in the past year has been due to the AI boom, specifically, due to AI data center builds. Without this ,US growth would be flat, potentially even negative. Even without the Iran war and rising energy costs, data center construction in the U.S. is currently facing significant headwinds, resulting in delays and escalating costs. The primary driver is the strained supply chain, impacting the availability of critical components like switchgear, generators, and specialized cooling equipment. Lead times for these items have stretched considerably, pushing project timelines back by months, if not quarters.
There are other factors for the slow down, especially chip and labor shortages, regulatory hurdles, and the increasing costs of infrastructure. This isn’t the place to delve into all of the factors, but the point is this vital sector for the US economy is in an extremely fragile state. One small push and it can come tumbling down.
And it turns out that whether this sector continues to keep the US out of recession or not is entirely in China’s hands. Forget chips as the vital factor, especially as other US allies control most of the chip production. Just as real a bottleneck is in Chinese electrical components. There is currently a backlog of several years for many of these. Sure, potentially in the long run, there can be many sources for these components. But not tomorrow. Or the day after.
With just the flick of a switch, China stop exporting these components and the AI boom dies almost instantly. And with it, any hopes for real growth in the US economy over the coming months or years.
I obviously don’t know how China will react, or what measures it will enact, if the US navy does go through with its blockade tomorrow. What I outline here is just one of many potential levers the Chinese can pull (rare earths, pharma base ingredients, T-Bills, …)
But don’t expect the US blockade to impact China too severely any time soon.
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Wartime internment camps in Australia
National Archives of Australia
World War I
During World War I, for security reasons the Australian Government pursued a comprehensive internment policy against enemy aliens living in Australia.
Initially only those born in countries at war with Australia were classed as enemy aliens, but later this was expanded to include people of enemy nations who were naturalised British subjects, Australian-born descendants of migrants born in enemy nations and others who were thought to pose a threat to Australia’s security.
Australia interned almost 7,000 people during World War I, of whom about 4,500 were enemy aliens and British nationals of German ancestry already resident in Australia.
Records of World War I internment camps
World War II
During World War II, Australian authorities established internment camps for three reasons – to prevent residents from assisting Australia’s enemies, to appease public opinion and to house overseas internees sent to Australia for the duration of the war.
Unlike World War I, the initial aim of internment during the later conflict was to identify and intern those who posed a particular threat to the safety or defence of the country. As the war progressed, however, this policy changed and Japanese residents were interned en masse. In the later years of the war, Germans and Italians were also interned on the basis of nationality, particularly those living in the north of Australia. In all, just over 20 per cent of all Italians resident in Australia were interned. … continue
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Aletho News- Tomorrow’s naval blockade showdown
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