U.S. Rises to Conquer China, To Restrict Chipset Exports to World

 

Despite the change in leadership, it appears that the US will continue to pursue a new "cold war" against China. Recent sources from Reuters claim that the Biden administration is planning a new, significant action to stop the Chinese economy from surpassing that of the US. A fresh set of sanctions that the White House is reportedly contemplating might prevent the export of sub-14 nm semiconductors with AI capabilities as well as chipmaking equipment. This appears to be a direct reaction to the tremendous strides the Chinese semiconductor sector has achieved. Chinese businesses moved to improve the nation's chipset production capabilities after Huawei's downfall. Additionally, the Chinese government is thinking about tough steps to compel businesses to buy Chinese chips. The US, though, is determined to stop Chinese expansion in this field.

The Commerce Department has already written to some of the major businesses in the sector that cooperate with China and supply chips to Chinese-based businesses. These businesses include well-known brands like NVIDIA, AMD, and Intel. The majority of businesses have already reported receiving these letters. Their representatives, however, are still unable to comment on the situation. It appears that the decision will force US businesses to only engage in business with China after receiving approval from the Commerce Department. As a result, the United States is tightening regulations while yet allowing some businesses to do business with China. But it will undoubtedly give these businesses difficulties and force them to think carefully before starting talks with China.

To conduct business with China, US firms will need to submit licencing applications.

It is important to note that the new regulations will only apply to the businesses who get the letter. However, to create regulations that would apply to the whole business, the Commerce Department is collaborating with Biden's administration. Any firm interacting with China in the semiconductor industry will find the situation more challenging once it becomes official. Dell, HP, and Super Micro Computer are a few other businesses that could also need to follow the new regulations. Although these aren't chipmakers, the usage of US chips may prevent them from entering China.

Clearly, this offers a fresh set of difficulties for the Chinese sector. Although the local industry is committed to improving its efforts in the field, it still lags far behind the leading businesses in this region. The main players in this area at the moment are the USA, South Korea, and Taiwan. This may even spark a fresh round of hostilities between China, Taiwan, and the United States. Without a doubt, nothing is getting better. It appears that the Biden administration is even looking for ally backing to strengthen the prohibition.

Strangely, current rumours claim that the US is thinking of offering Huawei some sort of respite. However, it's unclear precisely if such "relief" will exist.