The US and China are locked in an intensifying technological rivalry, with the latest salvo coming from the outgoing Biden administration in the form of new export controls on advanced semiconductor technology. These measures, aimed at curbing China’s development of cutting-edge AI and military capabilities, have drawn sharp condemnation from Beijing and further strained relations between the two global powers.
The US Commerce Department announced restrictions on the sale of semiconductor manufacturing equipment and access to American technology for numerous Chinese companies. The goal, according to US officials, is to impede China’s progress in developing advanced AI tools with potential military applications and to undercut its domestic semiconductor industry, which poses a threat to US national security.
China’s Commerce Ministry responded swiftly, denouncing the US actions as “unilateral bullying” and a threat to global supply chain stability. In a tit-for-tat move, China imposed its own export ban on materials crucial for semiconductor and electric vehicle battery production, citing potential military applications.
This escalation reflects the growing competition between the US and China for technological dominance, particularly in areas with national security implications. The US has expressed concerns about China’s potential use of advanced AI in military modernization and has accused China of stealing American AI technology.
The new US export controls represent the latest in a series of measures aimed at restricting China’s access to critical technologies. Previous restrictions have targeted semiconductor sales and the use of Chinese technology in smart vehicles.
China, meanwhile, is aggressively pursuing its own technological ambitions, with significant state investment in its semiconductor industry. The recent establishment of a $47.5 billion semiconductor fund underscores China’s determination to become a global leader in advanced technologies.
The ongoing tech rivalry between the US and China is likely to intensify under the incoming Trump administration, which has signaled a tough stance on China, including the potential for new tariffs.
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