Explainer-Biden's latest China curbs are part of plan to shift chip production stateside

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Explainer-Biden's latest China curbs are part of plan to shift chip production stateside
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SaltWire's Atlantic regional weather forecast for October 17, 2023] | SaltWireWASHINGTON - The Biden administration's latest round of export curbs on China is part of a two-pronged strategy that aims to halt China's technological advances over fears it could use the innovations to bolster its military, while at the same time luring more chipmaking back to the U.S. with funding.

"Chips are at the center of the administration's economic security and national security agenda when it comes to managing the competition with China," said Emily Kilcrease, senior fellow at the Center for a New American Security and former deputy assistant U.S. Trade Representative. While President Joe Biden has taken aim at fewer big-name Chinese companies since taking office in 2021, his administration has stepped up its efforts to keep China from advancing in three key fields: semiconductors, artificial intelligence, and quantum computing.

China has reacted to the measures by accusing the U.S. of using national security to justify economic bullying of its companies. It has also hit back with raids of U.S. businesses operating there and banned Chinese companies from working with U.S. chipmaker Micron.The United States, meanwhile, has been helping non-Chinese chipmakers negotiate with states like Arizona, Texas and New York to set up shop or grow existing operations.

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