Despite these restrictions, chip manufacturing remains active in Beijing, with Chinese tech giant Huawei recently unveiling a highly advanced smartphone chipset. The US and China continue to limit each other's access to different components, with China's export restriction said to be just the beginning. The escalating trade war is seen as a way to "de-risk" the US' relationship with China by opening specific trade flows while closing others to prioritize national security.
Key takeaways:
- The US is planning to implement export restrictions on certain technologies to China, including semiconductor equipment and advanced AI chips, as early as October this year.
- China has responded to previous US export curbs by describing them as an "abuse of trade measures" and has escalated tensions by implementing its own export curb for gallium and germanium, materials critical in creating integrated circuits, LEDs, fiber optics, and others.
- Despite the US' efforts to impede China's technological advances, chip manufacturing remains strong within Beijing, with Chinese tech giant Huawei recently unveiling a highly advanced smartphone chipset.
- The escalating trade war is seen by the Biden administration as a way to "de-risk" the US' relationship with China by opening specific trade flows while closing others, such as semiconductors and chips, to prioritize national security.