Tensions between the two nations have increased as a result of the United States’ recent announcement of new export restrictions targeted at limiting China’s capacity to purchase and produce semiconductors. The Bureau of Industry and Security (BIS) of the Commerce Department stated that these requirements “would restrict China’s capacity to purchase and produce select advanced chips used in military applications.”
Thea Roseman Kindler, assistant secretary of commerce for exports, said in a statement that “our actions will protect the national security and foreign policy interests of the United States while sending a clear message that American technology leadership is a matter of values, as well as innovation.”
This action comes after the Pentagon (US Department of Defense) banned 13 Chinese enterprises for allegedly having connections to the military a few days prior.
One of the most well-liked Chinese target firms is DJI, the world’s largest manufacturer of drones.
Chinese Foreign Ministry spokesperson Mao Ning condemned the limitations intended to “maintain technical superiority” of the United States in answer to a question. The production and export of semiconductors is at the centre of a vigorous competition for technological supremacy between the two economic powers.
Beijing is frequently charged by Washington with industrial espionage and posing a threat to the country’s security. Since there are now fewer semiconductors available due to the “Covid-19” dilemma, this dispute has evolved. In this regard, US President Joe Biden was successful in convincing Congress to approve a law that would allot $52 billion in subsidies in addition to tens of billions of dollars for research and development to resuscitate semiconductor production in the US.
The export restrictions put in effect on Friday “limit China’s capacity to purchase advanced computer chips, build and maintain supercomputers, and manufacture advanced semiconductors,” according to the Bureau of Industry and Security.
He continued, saying that these parts are “used by the People’s Republic of China to produce advanced military systems, including weapons of mass destruction; to accelerate and improve military decision-making, planning, and logistics; as well as their independent military systems; and to violate human rights.
The Biden administration is focused on defending US commercial interests against China’s efforts to dominate crucial areas like semiconductors, according to US Trade Representative Catherine Taye, who spoke before a Senate committee in June.
The US places new limitations on China’s ability to purchase semiconductors.
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