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