The Business Times
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Biden’s chip limits on China mark a war of high-tech attrition

The US now realises it can’t outpace its foremost rival simply by running faster; it must also slow Beijing down

    • American companies aren’t the world’s leading manufacturers of the chips Washington is seeking to deny to China; firms in other markets such as Japan and especially Taiwan are. But US firms and technology are deeply involved in designing high-end semiconductors, which gives Washington influence over the entire supply chain.
    • American companies aren’t the world’s leading manufacturers of the chips Washington is seeking to deny to China; firms in other markets such as Japan and especially Taiwan are. But US firms and technology are deeply involved in designing high-end semiconductors, which gives Washington influence over the entire supply chain. PHOTO: PIXABAY

    Hal Brands

    Published Mon, Oct 10, 2022 · 10:00 AM

    THE United States is escalating the technological cold war with China through new sanctions to squeeze the flow of high-end semiconductors and semiconductor-manufacturing equipment to Beijing.

    Don’t let the technological arcana fool you: Since advanced semiconductors power information-age societies, the US is seeking to hinder Chinese economic dynamism and military muscle alike. Washington’s new policy is a warning to Beijing about the long reach of US power in a globalised economy. It also reflects a sobering recognition that the US can’t win its competition with China simply by running faster; it must also slow Beijing down.

    This isn’t the first time Washington has used its influence on semiconductor supply chains as a geo-economic weapon. Beginning under President Donald Trump, Washington sought to kneecap the Chinese tech behemoth Huawei Technologies by denying it the cutting-edge chips it needed to dominate the world’s 5G telecommunications networks.

    SanctionsSemiconductorsUS-China trade

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