🧠 Technology & AI risk-off · 6–18 months
A what‑if from the future

What if China rare-earth/gallium counter-embargo hits chip inputs?

Beijing retaliates against chip controls by restricting gallium, germanium and rare-earth exports, squeezing semiconductor and defense-electronics input supply.

24%
our model probability
over 6–18 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 24% · 90% range 3–44% · 40 analogues · measured class supply_chain 26% in 18 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — supply_chain ≈0.2052/yr → 26% in 18 mo26%
Analyst prior · editorial share 98% of the class26%
Pooled · weight 87%24%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)24%
Published24%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 6–18 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. Beijing retaliates against chip controls by restricting gallium, germanium and rare-earth exports, squeezing semiconductor and defense-electronics input supply. The trigger decomposes into signed root‑shocks — Copper ▲ · Risk appetite ▼ · Semiconductor supply risk ▲ · Trade tension ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1TSMC TSMon Hyperliquid 📈 chartEquity▼ -2.4%
hist -1.73–-0.8% · other way +1.64% (n=12)
2Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -2.2%
hist -1.55–-0.51% · other way +4.13% (n=12)
3Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -2.2%
hist -1.32–-0.5% · other way +1.4% (n=12)
4Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -2.2%
hist -1.51–-0.43% · other way -0.05% (n=12)
5ASML ASMLon Hyperliquid 📈 chartEquity▼ -1.6%
hist -3.94–+0.86% · other way -0.91% (n=12)
6AMD AMDon Hyperliquid 📈 chartEquity▼ -1.6%
hist -1.4–+0.39% · other way -2.72% (n=12)
7Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.6%
hist -1.27–+1.45% · other way +5.76% (n=12)
8Micron MUon Hyperliquid 📈 chartEquity▼ -1.6%
hist -3.24–+0.31% · other way -1.7% (n=12)
9Marvell MRVLon Hyperliquid 📈 chartEquity▼ -1.6%
hist -1.22–+0.55% · other way -0.28% (n=12)
10Tech sector XLK 📈 chartEquity▼ -1.5%
hist -0.93–-0.52% · other way +0.37% (n=12)
11Alibaba BABAon Hyperliquid 📈 chartEquity▼ -1.1%
hist -0.76–-0.38% · other way -0.79% (n=12)
12Solana SOLon Hyperliquid 📈 chartCrypto▼ -1.1%
hist -10.61–+2.01% · other way -17.76% (n=11)
13MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -1.2%
hist -1.02–+0.25% · other way +8.12% (n=12)
14Qualcomm QCOMon Hyperliquid 📈 chartEquity▼ -1.0%
hist -3.44–+0.8% · other way -3.2% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): Tech sector -1.5% · Chinese yuan -0.8% · Aussie dollar -0.4% · Turkish lira -0.3% · High-yield credit -0.3% · Freeport (copper) -0.2%

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 ASML bookings-miss crash 2024-10 Megacap AI-capex doubt selloff 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07 Netflix subscriber-loss crash 2022-04 Meta 2022-02 Didi removed from China app stores after NYSE IPO 2021-07 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Nvidia crypto-glut guidance crash 2018-11 Mexican peso crash on Trump 2016 win 2016-11 Smoot-Hawley clears the US House 1929-05 Record $19bn crypto liquidation cascade 2025-10 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 US-China extend tariff truce by another 90 days 2025-08 Trump's 50% copper tariff sends Comex copper to a record 2025-07 Israel strikes Iran — Operation Rising Lion 2025-06 US and China agree Geneva tariff truce, slashing rates 2025-05 Tariff-pause record rally and VIX collapse 2025-04 Trump signs 25% Section 232 tariff on imported automobiles 2025-03 Tesla shares crater on DOGE political backlash and Europe sales collapse 2025-03 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 Nikkei 225 record single-day rebound 2024-08 Nikkei 225 worst single-day crash since 1987 2024-08 KOSPI biggest-ever point loss triggers circuit breaker 2024-08 VIX third-highest spike on record 2024-08 Report of a Blackwell design flaw signals a multi-month delay 2024-08 Intel's Q2 earnings trigger its worst single-day crash since 1974 2024-08 India slashes gold import duty from 15% to 6% in 2024 budget 2024-07 India's Modi loses single-party majority 2024-06 Mexico's Sheinbaum landslide + supermajority scare 2024-06 Nikkei 225 surpasses its 1989 bubble peak 2024-02 ARM debuts on Nasdaq with a 25% first-day pop 2023-09 China imposes gallium and germanium export controls 2023-07 Wagner Group mutiny against the Kremlin 2023-06 Turkish lira hits record low after Erdogan re-election 2023-05 First Republic Bank seized and sold to JPMorgan 2023-05
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
ETH ETHSHORT-8.4% · 5d -5.8%76%38 0.41✓ matches cascade
INTC INTCSHORT-5.6% · 5d -3.7%67%39 0.34✓ matches cascade
KRW KRWLONG+0.6% · 5d -0.0% ↺ fades67%39 0.30⚠ differs
KWEB KWEBSHORT-2.6% · 5d -1.2%67%39 0.29✓ matches cascade
Gold XAULONG+1.3% · 5d -0.1% ↺ fades67%39 0.29·
SOL SOLSHORT-8.8% · 5d -6.5%70%36 0.27✓ matches cascade
FCX FCXSHORT-1.8% · 5d -1.9%65%39 0.25✓ matches cascade
NDX NDXSHORT-0.5% · 5d -1.4%67%39 0.24✓ matches cascade
TRY TRYSHORT-1.6% · 5d +0.8% ↺ fades65%39 0.24✓ matches cascade
MU MUSHORT-2.2% · 5d -3.2%63%39 0.21✓ matches cascade
Bitcoin BTCSHORT-4.7% · 5d -3.2%63%39 0.20✓ matches cascade
XLF XLFLONG+0.9% · 5d +0.5%62%39 0.20⚠ differs
GBPUSD GBPUSDLONG+0.2% · 5d -0.1% ↺ fades62%39 0.18⚠ differs
AVGO AVGOLONG+2.1% · 5d -2.0% ↺ fades60%39 0.17⚠ differs

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.