The technological rivalry between China and the United States has not ended since the Biden administration came to power. The latter would have even decided to hit a big blow in the next few weeks or daysstill in the sensitive semiconductor sector.
The United States wants to hit where it hurts
Semiconductors have been identified as THE weak point of China’s impressive technological progress in recent years. Beijing is very dependent on its exports in the field and the United States uses it.
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The Chips Act, recently ratified by Joe Biden, supposed to push the production of chips on American territory, contains a component to deprive China of investment in the sector. Similarly, certain companies, mainly Nvidia and Advanced Micro Devices, have been banned from exporting certain very advanced components to the Middle Kingdom.
The decisions of the Biden administration are, despite everything, considered too soft by part of Washington. The recent performance of China’s largest semiconductor manufacturer, Semiconductor Manufacturing International Corp, to burn a 7-nanometer chip despite US restrictions seems to have acted like an electric shock.
According to information from New York Timesseveral draconian measures are being studied within the Democratic administration. The strongest of them is inspired by the one taken by Donald Trump during his crusade against Huawei and the retaliatory measures taken against Russia after the invasion of Ukraine.
The Chinese manufacturer of 5G antennas, world leader in the sector, has been isolated from any original product or with a share of components, software or even technology from the United States. No list has been published of the entities potentially affected by this measure. It could include companies, research laboratories and others.
Other decisions are being considered, aimed at increasing the control of exports of cutting-edge tools to China, of the chips themselves. Scrutiny of US corporate investments in sectors important to national security would also be part of the pack.
China’s progress could suffer from lack of advanced semiconductors
The Bureau of Industry and Security of the Department of Commerce, the entity responsible for the exported technologies did not confirm the revelations of the New York Times. However, they correspond to the classic speeches of Washington, whether they come from the Democrats or the Republicans.
US says it wants to block shipment of duplicative techcivil and military, to prevent China from developing new generations of armaments.
By paralyzing the shipment of sensitive products, they hope to hinder Chinese progress in the fields of supercomputers and data centers. They themselves are decisive for the development of innovation in the sector of artificial intelligence, biosciences, etc.
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The United States is about to take drastic measures against the export of chips to China
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