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America June 19, 2024 5 mins read

US and China Locked in Tech Supremacy Battle

America ı By Jackie Allen

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Technology Supremacy

The global landscape of technology is undergoing a seismic shift. The United States and China locked in a fierce battle for tech supremacy. 

This rivalry extends across various sectors, from the foundational building blocks like semiconductors to cutting-edge advancements in artificial intelligence and quantum computing. 

The two superpowers are battling for dominance.

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Seeds of the Tech War

The roots of this tech war can be traced back to 2015, when China unveiled its ambitious "Made in China 2025" plan. This blueprint aimed to propel the nation to the forefront of global innovation and establish it as the undisputed leader in high-tech manufacturing.

 This strategic move served as a wake-up call for US policymakers, who were already wary of China's assertive foreign policy. Experts like Enrique Feás of Elcano Royal Institute highlighted the potential for technological dominance to translate into military superiority, further fueling anxieties in Washington.

Sanctions and Trade Wars

The Obama administration initiated the tech war's early skirmishes with investigations into Chinese telecom giant ZTE for allegedly violating sanctions and illegally exporting US technology to sanctioned nations. However, the conflict truly intensified under the Trump administration. 

In 2017, ZTE was hit with a hefty fine, followed by increased scrutiny on Huawei amid concerns about espionage. China's National Intelligence Law, passed that same year, further stoked these anxieties by requiring domestic and foreign subsidiaries of Chinese companies to hand over data to the government upon request.

These concerns culminated in Huawei's addition to the Entity List, effectively severing its access to US technology and barring it from participating in America's 5G network rollout. This move was mirrored by bans on other Chinese companies like ZTE. 

The tech war transcended the realm of telecom as President Trump imposed hefty tariffs on $60 billion worth of Chinese goods, including solar panels, aiming to challenge China's stronghold in this pivotal green technology sector.

The Semiconductor Battleground

Semiconductors, the brains behind modern technology, lie at the heart of the tech war. Recognizing their vital role, the Trump administration implemented export controls on foreign chipmakers using American equipment. This move was designed to restrict China's access to essential resources needed to develop its own high-end semiconductors. These actions were further bolstered in 2020 with the addition of China's leading chipmaker, SMIC, to the Entity List, citing its ties to the Chinese Communist Party.

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Jackie Allen
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Jackie Allen

Jackie is a freelance journalist and technology geek. She worked as a telecom project director for AT&T and BellSouth. Before joining the USA Herald she has written books, articles, blogs and whitepapers. Her clients include Samsung and other technology companies.

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