US-China Tech Tensions Escalate with New Semiconductor Controls

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The Chinese government has strongly criticized the United States’ imposition of new export controls on US-made semiconductors, which Washington believes could be used by Beijing to advance its military capabilities and artificial intelligence (AI) systems.

According to the Leaders Asia sources, the fresh measures, rolled out by the Biden administration in its final days, have escalated tensions between the two global superpowers just as President-elect Donald Trump’s inauguration nears. Chinese President Xi Jinping has made achieving technological self-sufficiency a cornerstone of his economic agenda, aiming to elevate China to the status of a global tech leader.

On Monday, the US Commerce Department announced restrictions on the sale of 24 types of semiconductor manufacturing equipment, alongside limitations preventing several Chinese companies from accessing American technology. The aim of these controls, US officials said, is to curb China’s development of advanced AI tools for military use and hinder the growth of its semiconductor industry, which the US sees as a threat to its national security and that of its allies.

In response, China’s Ministry of Commerce condemned the actions, accusing the US of “abusing” export controls and creating a “significant threat” to the stability of global industries and supply chains. “The US preaches one thing but practices another, using national security as a pretext to broaden the scope of export controls and engaging in unilateral bullying,” the ministry said in a statement.

The competition for technological supremacy, particularly in military applications, has been a driving factor in US-China relations, especially with growing concerns in the US about a potential Chinese invasion of Taiwan. The Chinese Communist Party, which claims Taiwan as part of its territory, has adopted a more aggressive posture toward the island in recent years.

US officials have also accused China of stealing American-made AI software, a claim that Beijing denies. “These are the strongest controls ever enacted by the US to impede China’s ability to produce advanced chips for its military modernization,” said US Secretary of Commerce Gina Raimondo.

This move marks the latest in a series of export restrictions imposed by the Biden administration. Last October, the US further tightened semiconductor sales to China, aiming to close regulatory loopholes. Additionally, in September, the Commerce Department proposed banning the sale of certain smart vehicles using Chinese or Russian technology, citing national security risks. The incoming Trump administration has also taken a hard line on China, including the potential for additional tariffs.

In response to these pressures, China is ramping up its own efforts to lead in future technologies. In May, Beijing announced plans to establish its largest-ever semiconductor investment fund, worth $47.5 billion, with backing from major state-owned banks such as ICBC and China Construction Bank. This initiative underscores Xi’s determination to strengthen China’s position as a tech powerhouse.

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