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Treasury proposes banning many investments in Chinese semiconductor production

The United States is determined to dominate the semiconductor sector and prevent China from catching up.

  • Proposed new rules restrict U.S. investment in key sectors
  • Rules prohibit certain investments in advanced design, automation, manufacturing and packaging tools
  • Quantum computers and AI also targeted
  • Proposes notification requirements for all other investments in the development of Chinese AI systems

The United States will use every tool at its disposal to prevent anyone from entering the chip and AI game. But remember, the US banned Huawei, had the founder’s daughter arrested, and banned all technology in their phones. Yet in just a few years, the company replaced more than 13,000 parts and redesigned 4,000 circuit boards to overcome U.S. sanctions, as The Economist wrote.

It’s hard to bet against China’s manufacturing industry and Beijing will certainly put all its weight behind it to catch up.

The question is: would they go as far as Taiwan to progress?

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