Business

US-China technical war does not end under Biden

The technical hostility of the United States and China will not soon subside.


Photo:

Ng Han Guan / Associated Press

The technological war between the United States and China is likely to continue under the Biden administration, but moderately sweet stories can mask some of the deep bitterness.

Huawei’s story, centered around US accusations of sanctions evasion, industrial espionage, and potential security threats, has been at the heart of competition between the United States and China for the past few years. The Trump administration has restricted access by Chinese telecommunications equipment companies to chips made using US technology. Also, the US advantage in semiconductor equipment and design tools means that Huawei has become essentially impossible to procure chips.The United States has also imposed export control on Semiconductor Manufacturing International Co., Ltd.

Taiwan Semiconductor Manufacturing Co, the world’s largest chip foundry with market share. Chinese homemade alternative to replace.

These changes in US technological superiority have been addressed by exposing China’s vulnerabilities in semiconductors and doubling China’s determination to achieve self-sufficiency in chip manufacturing. We have already spent billions of dollars in the semiconductor industry and are hiring top engineers from other countries. According to industry group SEMI, China was the world’s largest market for semiconductor equipment in the third quarter, with sales of $ 5.62 billion, up 63% year-on-year.

Under the new administration, the tensions over technology will not be resolved. The Trump administration’s candid approach succeeded in kneeling Huawei, forcing even non-American companies to comply with its widespread restrictions. But in the long run, such a strategy could undermine the United States. Tech companies targeting the Chinese market may rethink their sourcing, research, or business there.

The new administration may prefer a targeted approach to major semiconductor manufacturers in the United States, such as Taiwan and South Korea, with the narrow goal of keeping cutting-edge technology out of the hands of China. Investing more resources to strengthen the research and manufacturing capacity of the United States and its allies can make it even harder for China to catch up. Supporting domestic chip production is in line with President-elect Joe Biden’s pledge to boost domestic production.

Fire and anger may be low, but it is unlikely that the technical competition between the two superpowers will disappear.

Write to Jacky Wong (JACKY.WONG@wsj.com)

Copyright © 2020 DowJones & Company, Inc. all rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

US-China technical war does not end under Biden

Source link US-China technical war does not end under Biden

Back to top button