US-China chip war: How the technology dispute is playing out

upamfva · Anmeldungsdatum: 12.04.2022 Beiträge: 388

US-China chip war: How the technology dispute is playing out

In October, Washington announced some of the broadest export controls yet - requiring licences for companies exporting chips to China using US tools or software, no matter where they're made in the world.To get more china tech news, you can visit shine news official website.

Washington's measures also prevent US citizens and green card holders from working for certain Chinese chip companies. Green card holders are US permanent residents who have the right to work in the country.

It is cutting off a key pipeline of American talent to China which will affect the development of high-end semiconductors.
Why is the US doing this?
Advanced chips are used to power supercomputers, artificial intelligence and military hardware.The US says China's use of the technology poses a threat to its own national security.

Alan Estevez, undersecretary at the US Commerce Department announced the rules, saying his intention was to ensure the US was doing everything it could to prevent "sensitive technologies with military applications" from being acquired by China."The threat environment is always changing and we are updating our policies today to make sure we're addressing the challenges," he said.

Meanwhile, China has called the controls "technology terrorism".Countries in Asia that produce chips - such as Taiwan, Singapore and South Korea - have raised concerns about how this bitter battle is affecting the global supply chain.And there were three significant developments in the chip conflict over the past week.

The Biden administration has added 36 more Chinese companies, including major chipmaker YMTC to Washington's "entity list".

It means American companies will need government permission to sell certain technologies to them, and that permission is difficult to secure.

The US restrictions have broad implications. Last week, UK-based computer chip designer Arm confirmed that it was not selling its most advanced designs to Chinese firms including tech giant Alibaba because of US and UK controls.

Arm said it was "committed to adhering to all applicable export laws and regulations in the jurisdictions in which it operates."China has filed a complaint against the US with the World Trade Organization (WTO) over its export controls on semiconductors and other related technology.

This is the first WTO case Beijing has brought against the US since President Joe Biden took office in January 2021.In its WTO filing, China alleged that the US is abusing export controls to maintain "its leadership in science, technology, engineering and manufacturing sectors".

It added that US actions threatened "the stability of the global industrial supply chains".The US said in response that the trade body was "not the appropriate forum" to settle concerns related to national security.

US Assistant Secretary of Commerce for Export Administration Thea Kendler said "US national security interests require that we act decisively to deny access to advanced technologies."