In the ongoing technology rivalry between the United States and China, President Joe Biden’s administration is encountering demands from certain lawmakers to limit the involvement of American companies in the development of a chip technology that is readily accessible and commonly used in China.
This decision has the potential to disrupt the way the technology sector engages in cross-border collaboration worldwide.
A new question that arises – How was China able to design its new chip without help from the US? This is a vital question as China is now not allowed to access EDA tools from US companies. The world was astonished by Huawei’s achievement in producing its own self-developed SoC using 7nm technology through SMIC, China’s leading semiconductor foundry service provider. Representative Michael McCaul, head of the House Foreign Affairs Committee, stated that if the Bureau of Industry and Security (the part of the Commerce Department in charge of export-control laws) does not act, he will seek legislation.
A major US technology corporation made an unusual announcement a little over a month ago.
Nvidia, which manufactures the world’s most powerful computer chips, claimed that the US government was limiting the shipment of its most advanced processors to some Middle Eastern countries. This was a sign that the China-US tech war had arrived in the Middle East.
Washington had concerns about China’s technical progress, as well as the industrial espionage and cyber theft that came with it since the early 2000s. They were brought to light in 2018 when the US Trade Representative produced a report summarizing China’s claimed offenses against the US.
A few years ago, the U.S. initiated actions to prevent companies like Huawei from participating in American infrastructure, primarily due to concerns about their potential for espionage. It’s safe to say that the relationship between the United States and China has undergone significant changes. There is now rivalry and strain in various areas, with technology being a prominent example. Presently, as demonstrated by the Biden administration’s CHIPS and Science Act, U.S. policy goes beyond just safeguarding against espionage; it also aims to limit China’s capacity to acquire advanced computing capabilities.
The tech rivalry between China and the US has extended beyond their borders. These developments underline the deep-seated concerns in Washington about China’s technological advancements, as well as its history of industrial espionage and cyber theft, dating back to the early 2000s. The US Trade Representative’s report in 2018 highlighted China’s alleged transgressions against the US, signaling a significant shift in the US-China relationship, especially in the realm of technology.