The US and China are engaged in a chip war, with both sides trying to gain an advantage in the development and use of cutting-edge technology.
The US has focused on restricting China's access to advanced chips and the equipment used to make them. This includes banning US companies from selling components and software to ZTE and Huawei, and pressuring the Netherlands to restrict exports of EUV lithographic equipment to China.
The Biden administration is also adopting a two-pronged strategy to compete with or contain China on the technology front. First, it is shifting chip production partly out of Taiwan through "onshoring" and "friend-shoring" with allies. Second, it is using "choke point" strategy to target China's vulnerabilities, such as its dependence on chip imports.
China is responding to the US chip war by manufacturing or buying less advanced chips and developing its own EUV machines. However, it is still far behind the US in terms of chip technology.
The outcome of the chip war is uncertain. The US and its allies have the upper hand in terms of innovation and talent, but China has the market scale. It remains to be seen who will have the decisive edge in 2030.
Here are some additional points that could be included in the condensed version:
The chip war is a part of the broader US-China rivalry, which is also playing out in other areas such as artificial intelligence, quantum computing, and 5G.
The chip war is having a significant impact on the global economy. It is causing chip prices to rise and is disrupting supply chains.
The chip war is also having a security impact. The US is concerned that China could use its access to advanced chips to develop weapons of mass destruction.