The Escalating Rivalry Over CHIPS and Global Tech Dominance
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Chinese industry associations have urged companies to reduce their reliance on U.S.-made chips, citing concerns over their safety and reliability. This rare joint statement from four prominent groups marks a coordinated response to Washington’s tightening restrictions on Chinese semiconductor firms, which recently targeted 140 companies, including Naura Technology Group.
The escalating tech rivalry comes as U.S. President-elect Donald Trump prepares to re-enter the White House, vowing to reintroduce tariffs on Chinese goods, rekindling a trade war from his first term.
The warnings could impact American chipmakers like Nvidia (NVDA:US), AMD (AMD:US), and Intel (INTC:US), which have maintained sales in China despite U.S. export controls. However, the Semiconductor Industry Association dismissed the claims, arguing that such accusations are "inaccurate" and urging both governments to avoid further escalation.
China also retaliated by banning the export of key rare minerals critical to military and industrial applications. Analysts, including Tom Nunlist of Trivium China, noted this move reflects a shift in Beijing’s approach, signaling its willingness to respond more assertively.
The Internet Society of China encouraged local firms to collaborate with non-U.S. chipmakers and prioritize domestic production. It criticized U.S. export restrictions for harming China's tech sector but expressed confidence that affected companies could sustain operations through localization efforts.
These developments echo earlier actions, such as China’s cybersecurity review of U.S. memory chipmaker Micron (MU:US), which led to restrictions on its sales to critical domestic industries. Intel has also faced scrutiny, with Chinese industry groups accusing it of jeopardizing national security.
The mounting restrictions and retaliatory measures underscore the intensifying semiconductor battle between the two nations, with technology at the center of their economic rivalry.
Demonstrating confidence in U.S. government policies and the strength of domestic tech firms, several lawmakers have shown significant support for the nation's tech giants. Over the past three months, Representatives Marjorie Taylor Greene, Pete Sessions, and Tom Suozzi have significantly increased their investments in Nvidia, signaling faith in the company’s growth potential. Similarly, Representatives Greene, Michael McCaul, and Ro Khanna have been actively purchasing shares of Intel Corp during the same period, underscoring their optimism in the tech sector's resilience and innovation.
