The economic war between the United States and China hit a watershed moment this month.
On October 7, (2022), the Biden Administration imposed a wide range of export controls on China aimed at limiting the export of technologies used in the manufacturing of cutting-edge semiconductors, as well as restricting access to human capital and industry know-how by preventing American citizens from working in China.
The sanctions on China’s chip industry follow prior ones put in place by both the Biden and Trump administrations targeting China’s leading semiconductor manufacturer SMIC (Semiconductor Manufacturing International Cooperation) and smartphone giant Huawei. Sanctions have also limited Chinese access to cutting edge AI (artificial intelligence) chips, and the White House has continually lobbied the Dutch company ASML (Advanced Semiconductor Materials Lithography) against exporting technologies needed in advanced semiconductor manufacturing to China.
Although previous sanctions had mixed efficacy, the newest ones are considered to be a sharp escalation in severity according to analysts.
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