US-China chip war: How the technology dispute is playing out

Washington announced some of the broadest

export controls on chipmakers in October

The u.s. is rapidly. Ramping up efforts to try to hobble China's progress in the semiconductor industry, vital for everything, from smartphones to weapons of war, in October, Washington announce, some of the broadest, export controls yet, requiring licenses for companies exporting chips to China, using us tools or software. No matter where they're made in the world. Washington's measures. Also prevent US citizens and green card holders from working for certain Chinese chip companies. Green card holders are u.s. permanent residents who have the right to work in the country. It is cutting off a key pipeline of American talent to China, which will affect the development of high-end semiconductors. Why is the u.s. doing this?

Advanced chips are used to power

 

supercomputers artificial, intelligence and

 

military hardware

The US says, China's use of the technology poses, a threat to its own National Security. Alan Estevez under secretary at the US. Commerce Department announced the rules saying his intention was to ensure the US was doing everything. It could to prevent sensitive Technologies with military applications from being acquired by China. The threat environment is always changing and we are updating our policies today to make sure we're addressing the challenges. He said, meanwhile China has called the controls technology terrorism. Countries in Asia. That produce chips, such as Taiwan, Singapore and South Korea, have raised concerns about how this bitter battle is affecting the global supply chain. And there were three significant developments in the chip conflict over the past week, more Chinese firms on and to delist the Biden Administration, has added 36 more Chinese companies, including major chip maker, ymt see to Washington's entity list. It means American companies will need government permission to sell certain Geez to them. And that permission is difficult to secure the u.s. restrictions have broad implications last week. Uk-based computer chip designer arm confirmed that it was not selling its most advanced designs to Chinese firms, including Tech Giant Alibaba because of us and UK. Controls arm said it was committed to adhering to all applicable export laws and regulations in the jurisdictions in which it operates. China complains to WTO, China has filed a complaint against the US with the World Trade Organization over its export controls on semiconductors and other related technology. 

This is the first WTO case Beijing has brought against the us since President. Joe Biden took office in January 2021 in its WTO filing China alleged that the u.s. is abusing export controls to maintain its leadership in science, technology engineering and Manufacturing sectors. It added that us actions threatened, the stability of the global Industrial Supply chains. The US said in response that the trade body was not the appropriate Forum to settle concerns related to national security. U.s. assistant Secretary of Commerce. For export Administration, Thea kendler said US National Security interests. Require that we act decisively to deny access to Advanced Technologies. WTO says Trump steel. Tariffs broke trade rules. Why is there a chip shortage? The complaint specifies, that the US has imposed restrictions on the export of approximately 2,800, Chinese Goods. But only 1800 of these were allowed under International Trade rules. The United States has 60 days to try to resolve the matter. If not, China will be allowed to request for a panel to review. Its case earlier this month, the WTO ruled that us tariffs on steel and aluminium that were imposed by the US under former President. Donald Trump violated global trade rules, Two-thirds of all the goods. China sells to the US are subject to tariffs. The US said it strongly rejects the ruling and has no intention of removing the measures talks with Japan and the Netherlands Japan and the Netherlands, could possibly impose export controls on China. Limiting, the ability of Japanese and Dutch companies to sell Advanced products to the Chinese market.