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Biden Seeks to 'Kneecap' China's Tech Industry With Chip Export Ban
Washington is doubling down on efforts to remain competitive against Beijing. Under new restrictions imposed by the Biden administration, it's going to be more difficult to sell semiconductor chips and manufacturing equipment to China. In doing so, the U.S. hopes to stifle China's military and technological capabilities. Read about this latest step, industry reactions and more.
The New Executive Order
China's Response
Previous Steps Taken by the U.S. to Protect Domestic Chipmakers
The Biden administration has ordered Nvidia and AMD to cease selling some of its technology to China, some of which is allegedly finding its way into military use. Beijing denied the claims, demanding the U.S. remove the trade restrictions. The move appears to be another effort to reduce China's access to sophisticated semiconductor chips.
The Senate inched closer this week toward passing a bill that would provide $52 billion in funding to Intel, TSMC and America's semiconductor-making industry. Commonly referred to as the CHIP Act, the aim is to improve competition with China. The legislation faces heavy criticism though, as Sen. Bernie Sanders labeled it "massive corporate welfare" and some chip makers feel industry giants like Intel will receive the most benefit.
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