“This move is a new step in what we can safely call a cold trade war between China and the US over trade and technology,” said VRT NWS expert on geopolitics and technology Tom van de Weghe. “But what the US is doing to become more strategically independent and self-sufficient, China is also doing European union It’s in the works.”
Earlier last month, US President Joe Biden signed another bill investing $280 billion in advanced technology manufacturing and scientific research in an effort to keep up with China on the technological front. The US government promised tax breaks to companies building chip factories in the US.
Starting last week, US chipmakers imposed tougher rules on exports of chips used in artificial intelligence to China and Russia. The US government fears they could be used for military purposes. Share prices of some companies exporting to China immediately fell by a few percentage points last week. Experts speak of a “strong punch in the stomach” from those companies.
The Chinese government, outraged by the US plans, has accused the US of a “Cold War mentality”.
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