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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