Since 2020, Washington has imposed restrictions on US companies exporting chip technology to Beijing, and has agreed with its allies in Europe and with South Korea, Japan and Taiwan, to reduce their cooperation with China in this field.
Among the most recent of these responses is the Netherlands’ announcement, on Friday, that companies that produce machines for making advanced processor chips are obligated to obtain an export license abroad, as of next September, referring to China in particular, under the pretext of “protecting national security.”
The strongest in history
In the words of an information technology expert, Abd al-Rahman Dawood, China and the United States are now the biggest competitors in the field of chips, and whoever controls this field “will be the largest power in history,” pointing out that the chip industry around the world costs more than $600 billion.
According to Dawood, Washington “is the mother of this industry, and distributes it to its allies, and it used to allow limited passage to China in exchange for commercial advantages it obtained from Beijing.”
Under former US President Donald Trump, Washington tightened restrictions on the access of this technology to China, especially with its use in its military industries.
Alliance map
Regarding the chip industry scene, Daoud says:
- China sensed the danger, especially since its phone companies, including Huawei, were affected by the US restrictions.
- Beijing is working to localize the chip industry, and has allocated $ 150 billion for this, and has developed a plan to attract chip scientists and manufacturers with salaries that exceed those offered in the United States.
- Labor for this technology in China is getting twice as much as workers in the United States.
- China has concluded agreements with Russia and countries in South America to exchange information and expertise needed for the chip industry, and has signed contracts with countries in Africa to obtain the minerals needed for this industry.
- The Chinese actions showed that there are two alliances, the United States, Europe, South Korea and Japan on the one hand, and China, Russia and some Latin American countries on the one hand, in addition to Beijing’s control over the supply chains of minerals in Africa.
- What is happening so far indicates that there is no victor in this race yet, as Washington needs Beijing to secure the supply of minerals needed for this industry, and Beijing needs Washington to obtain chip manufacturing technology, and Beijing still needs time to localize this industry.
Taiwan is in the center of the race
The economist, Youssef Al-Tabei, points out the role of this race in triggering international crises, citing the example of the conflict between Beijing and Washington over Taiwan, which “is unique in making most of the segments in the world today.”
Al-Tabei explains that Taiwan “follows a neutral policy regarding chips, for fear of China’s anger as well as Washington’s abandonment of it,” amid its concern about a Chinese invasion of its lands, which Beijing considers part of its territory.
But if the conflict escalates, and Taiwan is required to lean towards one of the two powers, whoever it chooses “will prevail in the chip crisis,” according to Al-Tabei.
And the economist advises that “it is best for the world and technology companies to cooperate between Beijing and Washington, because if this does not happen, the industry will be affected, as well as the future of artificial intelligence.”
What are electronic chips?
They are precise components produced from silicon, and are used in the transportation and communication industries such as phones, computers, cars, as well as the military industries.
It takes more than 3 months to manufacture the chip, and it needs giant factories and rooms with millions of dollars in equipment and machines.
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