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US-China Rivalry May Spur Decoupling of Chip Sector – BBC

A possible outcome of US chip controls could be “a partial decoupling” of the sector, experts say, with “one focused on China and one on the rest of the world”

A man looks at a semiconductor display at a trade fair in Shanghai
The US is currently winning the chips war, but an eventual outcome could be "a partial decoupling" of the chips ecosystem that forces countries to pick sides, an expert has warned. Photo: Reuters.


The chips war the United States has declared on China stems from US concern about being dependent on Taiwan and other countries in Asia for supply, according to a report by the BBC, which noted that this rivalry between the world’s two biggest economies is reshaping the global economy.

While the US export controls and labour restrictions introduced last October on advanced chips have hit China hard, the eventual outcome could be “a partial decoupling” of the innovative ecosystem generating advanced logic and memory chips, with “one focused on China and one on the rest of the world”, the report said, and that could have “huge ramifications” as it could “force players to pick sides, possibly cutting many off from accessing the Chinese market.”

Read the full report: BBC News.



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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


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