The conflict between the United States and China is entering a new phase. This time, the reason for the dispute is chips and technology, which may ultimately play a key role in the relations between the two powers on the international arena.
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Recall that just a few weeks ago, the administration of President Joe Biden introduced a new package of export controls. Of course, the Americans could swear by reality and tell different stories about the reasons for such actions, but experts around the world have no doubt that it was just another flick in the nose of the Chinese, hard hitting the flow of key technologies behind the Great Wall.
China may have a huge processing capacity, but cutting them off from technological know-how may turn out to be fateful for them.
Economy in trouble
How is all this supposed to work? US export control is intended to work on many different levels, but the most important one is to cut off China from the chips, which are manufactured using very advanced American technology by domestic entities. But that's not all. The same regulations will apply to foreign producers who only use these solutions.
Hitting Chinese chip makers in this way could severely slow down the development of the giant behind the Great Wall in the long run. The Americans use technology in which the arrangement of transistors on the chip will be only three nanometers. For the uninitiated - the shorter the distance, the faster and more efficient the exchange of information takes place.
The Chinese are not so well developed in this respect and without access to such advanced technology, they have to be content with a dozen or so nanometers of their own creation. Needless to say, in today's world this is a real abyss, which in just a few years could drive China over the abyss.
"Our controls may weaken over time if other countries don't join them”- the White House said.
The war is spilling out
However, the partners of the United States have their problems, and they are not small, which are related to connections and dependence on the Chinese. We are talking mainly about Europe, which has fallen into a pale fear resulting from the control of Asian entities over critical infrastructure.
Only in the previous week there were two disturbing events that are clearly a splinter of the ongoing clash between China and the US.
The first was in the UK, where Dutch company Nexpieria, which is a subsidiary of Shanghai-based semiconductor manufacturer Wingtech, was instructed to sell as much as 86 percent of the Newport Wafer Fab, just a year after its transfer.
The second event concerned the blocking of the takeover of a chip factory in Germany and, according to CNN Business experts, it is not difficult to find a double bottom and retaliatory action of the Chinese in all this.
Necessary agreement
Interestingly, all the events take place in the shadow of the recent meeting between Presidents Biden and Xi, who had the opportunity to shake hands in Bali during the G20 summit.
There was no end to smiles and announcements of cooperation then, but as you can see, meetings in front of cameras are one thing, and real and tough politics are a completely different story.
Foto: https://www.freepik.com/free-photo/3d-render-us-import-tarrifs_2730397.htm#query=china%20usa&position=2&from_view=search&track=ais" / Image by kjpargeter / on Freepik
