In the third major crackdown in a bid to slow down China’s technological growth, the United States has struck again on the US China semiconductor restrictions industry. The new restrictions that were declared on Monday involve more than 140 Chinese companies, with the emphasis made on limiting China’s access to such semiconductor technologies as those used in the military, artificial intelligence, and supercomputing industries. This is the latest in a series of efforts by the Biden administration to slow China’s advancement in advanced technologies.
The US China technology Cold War
These US China semiconductor restrictions build on those put in place over the past two years to try and stop China’s advances in fields that could be used for military ends. The new restrictions to trade are; prohibition of export of advanced memory chips and production equipment that is vital for the production of the new generation chips. The restrictions are also applied to Chinese firms in artificial intelligence and supercomputing industries, which are critical developments for the new world order.
Statement of Commerce Secretary Gina Raimondo
Commerce Secretary Gina Raimondo described these controls as the ‘strongest measures ever adopted’ at regulating US China semiconductor restrictions relations. She stressed that these actions are aimed at the destruction of China’s capability to create top-notch chips that are necessary for military developments and cyber security. In the increasing competition, the United States seeks to guard its own interest of maintaining technological dominance as well as managing the rise of China in the technology industry.
Effects on Semiconductor Equipment and the Rest of the World
Other than restricting certain exports, the new rules are directed at 24 categories of semiconductor manufacturing equipment to limit China’s capacity to make advanced chips. But there are exceptions which still permit the American firms to apply for licenses in cases where they want to send goods to Chinese firms, although there is always a mix of security and business concerns. However, there are such concerns that excessively strict regimes can negatively affect the US firms that rely on China for revenues.
Concerns and Controversy Regarding Efficiency
While new rules to restrict Chinese technology by the US are looked at as a strategic move to slow China down, some critics found the rules are half-baked. However, some Chinese factories that are even under construction are exempted from the ban. Besides, while these measures may slow down China’s development of more sophisticated chip US China semiconductor restrictions, it is still uncertain whether they would completely restrain China’s technological progress or the country will have to look for ways and means.
Global Implication and the Future of the US China technology Industry
When these restrictions are implemented, the U.S. has the problem of enforcing those restrictions without affecting its own tech market. On the other hand, China is expected to seek other ways of enhancing its semiconductor industry as it finds the current path unprofitable. The success of these rules in checking China’s advancement will greatly depend on the ability of China in managing the US China semiconductor restrictions limitations in the forthcoming months.
source:: chemanalyst.com
