Impacts of the United States’ ban of semiconductor exports to China have yet to be fully understood. Beijing must scramble to discover new ways to access the most critical supply chain.

News headlines described the Biden administration’s latest semiconductor-focused sanctions on China as sheer annihilation, which could ‘decapitate’ the overall semiconductor industry.

America may not be able to block China’s core momentum in the manufacture of high-end semiconductors, even with its suppressive CHIPS Act. Rather, the global semiconductor industry will inevitably divide into two parallel, competing systems.

America may not be able to block China’s core momentum in the manufacture of high-end semiconductors, even with its suppressive CHIPS Act. Rather, the global semiconductor industry will inevitably divide into two parallel, competing systems.

The U.S. House speaker made a bad situation worse, and China-U.S. relations are headed to a new low. Changes can be seen on multiple fronts, but perhaps most clearly in the military dynamics between the two countries and in the chip-making regime, which has become an important chess piece in the geopolitical game.

Washington wants to build a “small chip world” for itself that is decoupled from global supply chains. This is pure fantasy. The act can neither help the U.S. achieve a secure supply chain nor rejuvenate its domestic chip manufacturing sector. And it won’t slow China down either.