The US government has recently implemented a series of export controls on US-made semiconductors in response to concerns that China could utilize the technology for military purposes and advanced AI systems. These measures, introduced by the outgoing Biden administration, have escalated tensions between the world's top two economies.
The new restrictions, announced by the US Commerce Ministry, include limitations on the sale of certain semiconductor-making equipment and restrictions on Chinese companies accessing American technology. The primary objective of these controls is to impede China's progress in developing advanced AI tools for military applications and to counter the growth of China's domestic semiconductor industry, which is viewed as a threat to US national security and that of its allies.
In response, China's Commerce Ministry criticized the US for its 'abuse' of export controls, labeling it a significant threat to global industrial and supply chains. The ministry accused the US of broadening the concept of national security excessively and engaging in unilateral actions that amount to bullying.
The US has justified these measures as necessary to limit China's ability to produce advanced chips for military purposes. Secretary of Commerce Gina Raimondo emphasized that these are the most stringent controls ever imposed by the US to hinder China's military modernization efforts.
This latest move is part of a series of export restrictions imposed by the Biden administration on China. Last October, the US Commerce Ministry restricted the types of semiconductors that American companies could sell to China, citing the need to close regulatory loopholes. In a separate action in September, a ban was proposed on the sale or import of smart vehicles using specific Chinese or Russian technology due to security concerns.
Meanwhile, China is intensifying its efforts to dominate future advanced technologies. In a significant development, Beijing announced plans to establish a massive semiconductor state investment fund worth $47.5 billion, supported by investments from major state-owned banks. This initiative underscores China's ambition to strengthen its position as a global tech powerhouse.
