China is striking back at the West for restricting its access to leading-edge semiconductor manufacturing equipment and AI chips. By imposing export license on the semiconductor raw materials it controls, the PRC is widening the battlegrounds of the Tech Cold War.
By Bolaji Ojo
What’s at stake?
That China would punch back in its bruising battle with the United States over access to leading-edge semiconductor innovations was expected. Which parts of the supply chain would be targeted was the initial unknown, but it is clear now that the opportunities to eliminate disagreements are disappearing, leaving only the question of how deeply the industry will be hurt.
The paradox of China-US relationship can be daunting. The economies are heavily intertwined, but they also squabble a lot nowadays. Loudly and repeatedly. For technology companies in both geographies, the contradictions can be both impossible to avoid and enormously costly.