The United States imposes crippling restrictions on the export of advanced chips to China

In a move aimed at crippling China’s high-tech sectors, the Biden administration last Friday announced sweeping measures that effectively ban the export of advanced computer chips and equipment needed in their manufacture to Chinese companies.

President Joe Biden attends an event to support legislation that would encourage domestic manufacturing and strengthen supply chains for computer chips in the South Courtroom on the White House campus, March 9, 2022, in Washington. [AP Photo/Patrick Semansky]

While imposed on a “national security” basis, export controls will affect a wide range of business sectors in China that include artificial intelligence (AI), high-performance computing or supercomputers.

The recent export ban underscores US imperialism’s determination to weaken and eventually subjugate China, which in Washington is the main threat to its global hegemony. China, currently the world’s second largest economy and expected to overtake the United States by the end of the decade, is no longer simply a center for manufacturing low-cost goods. It threatens US dominance in high-tech fields where artificial intelligence and cutting-edge computing are essential.

Paul Triollo, technology expert at consultancy Albright Stonebridge, told financial times That the US actions were a “major turning point” in US-China relations. “The United States has essentially declared war on China’s ability to promote the country’s use of high-performance computing for economic and security gain,” he said.

The latest controls expand the measures the Trump administration has imposed on the Chinese high-tech company, Huawei, which has effectively ended its position as a leading manufacturer of mobile phones and networking equipment. The Huawei founder reportedly told employees that the company’s survival was at stake. The Biden administration is now seeking to wreak havoc on the high-tech sectors of the Chinese economy.

The controls are based on the “Foreign Direct Product Rule” that is far-reaching in scope. It effectively prohibits any US or non-US company from providing targeted Chinese entities with hardware or software whose supply chain contains any US technology. About 30 Chinese companies have been placed on a list of “unverified” companies, giving them 60 days to meet stringent US requirements. Failing that, they will be placed on an “entity list” that prevents US companies from providing them with technology without hard-to-obtain US licenses.

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