According to The Star, the US has limited supplies of crucial semiconductor components and technology to China in an effort to destabilise Washington as the world’s largest economy under “unprecedented” pressure.
Despite possessing the world’s best industrial production capabilities, essential technologies such as China’s Achilles’ heel are easy prey for Washington’s tech containment policy.
According to The Star, as quoted by ANI, Chinese President Xi Jinping’s dreams of converting China into the preeminent global digital power while surpassing the United States to become the world’s number one economy may crumble.
Jun Zhang, an associate professor of economic geography at the University of Toronto, said, “Chips are the foundation of the modern economy.” “There’s a rough estimate that a yuan’s worth of chips can support 10 yuan’s worth of electrical capacity and generate 100 yuan’s economic output.”
According to the professor, China is under unprecedented US pressure, and its worldwide competitiveness is partly determined by how far US containment will go.
However, US President Joe Biden signed the bipartisan Chips and Science Act of 2022 into law in August in order to boost American semiconductor development with federal subsidies of USD 52.7 billion.
In October, his government considerably enlarged its list of technology curbs on China, focusing on sophisticated semiconductor chips, chip-making software, and tech personnel, according to The Star.
This month, the United States joined forces with the Netherlands and Japan to block the transfer of cutting-edge chipmaking equipment to China.
To make matters worse, the European Union (EU) is scheduled to approve the EU Chips Act later this year. The law aims to increase Europe’s share of global chip production capacity to around 20%.
Although China has not provided an official assessment of prospective economic losses, it has scolded Washington for abusing its market dominance.
