Us Bars 'advanced tech' Firms From Building Chinese Factories for 10 Years
With rising chip shortages and seemingly lowered technological edge in comparison to China, the United States (Namely the Biden administration) to try and solve this problem has put in a ban for building Chinese factories from American companies for the next 10 years. This has been named the US Chips and Science Act.
The US currently produces roughly 10% of the global supply of semiconductors, which are key to everything from cars to mobile phones, down from nearly 40% in 1990.
An image of a microchip with parts and pieces of how it was made strewn across the image to create a sense that it is being worked on to hone in on the point that the microchip situation of the global infrastructure of microchips currently.
According to BBC News the outline of the ban includes $50bn aimed at building up the local semiconductor industry in the United States to avoid a chip shortage. This bars advanced tech firms from building Chinese factories for 10 years. However this only affects companies that receive federal money to invest in technological endeavors.
"We're going to be implementing the guardrails to ensure those who receive CHIPS funds cannot compromise national security... they're not allowed to use this money to invest in China, they can't develop leading-edge technologies in China.... for a period of ten years," according to US Commerce Secretary Gina Raimondo., explaining the US Chips and Science Act.
However many critics are saying that this act is only exasperating the US and Chinese tension and is fanning the fire of potential conflict.
The Chinese Embassy in Washington had opposed the semiconductor bill, calling it reminiscent of a "Cold War mentality." Which checks out as during the cold war only conflicts of ideologies reigned as the forefront of tensions rising, which we are seeing repeated here.
Modern image of Chinese skyline situated from water level.
Summary
The upcoming US-China trade deal would prohibit a group of US technology firms from building "advanced technologies" facilities in China. This was announced as part of the $50 billion investment program to boost the local semiconductor industry. The announcement comes after businesses want more funding from the government in the hope of reducing dependence. They face the worlds biggest apex of micro chips, causing a slowdown.