The US and China have intensified their tech rivalry following the announcement of fresh export controls on US-made semiconductors, aimed at curbing China’s technological and military advancements.
Limits on AI development
The outgoing Biden administration has set in place measures designed to limit China’s access to high-tech equipment and materials critical for artificial intelligence (AI) systems and next-generation weaponry.
On Monday, the US Commerce Department unveiled restrictions on the sale of two dozen types of semiconductor manufacturing equipment and banned numerous Chinese firms from accessing American technology.
These controls are designed to hinder China’s domestic semiconductor industry and slow the development of AI tools that could be weaponised.
In response, China’s Ministry of Commerce denounced the move, accusing the US of undermining global industrial and supply chains through unilateral actions.
A day later, Beijing imposed a ban on exporting critical materials such as gallium, germanium and antimony to the US, citing their potential military applications.
These materials are essential for semiconductor and electric vehicle battery production, and the ban closes previous loopholes that allowed exports under special permits.
The tech standoff reflects broader US concerns about China’s growing assertiveness, particularly over Taiwan, and its military modernisation.
Export controls
The Biden administration has imposed three rounds of semiconductor-related export controls since 2022, with the latest measures including restrictions on high-bandwidth memory chips and related software.
China has doubled down on its ambition to dominate advanced technology sectors, unveiling a $47.5 billion state investment fund for semiconductor development earlier this year.
The fund, backed by major state-owned banks, underscores President Xi Jinping’s push for self-sufficiency in critical technologies.
As the Trump administration prepares to take office, spokespeople have signalled a hardline approach to China, including potential tariffs and additional restrictions on Chinese technology in vehicles.
This all looks set to further escalate the race for technological supremacy, shaping US-China relations in an era of heightened geopolitical tension.