Semi-conductors and their Relevance
Relevance of Semi-Conductor Industries
News
The US has banned the sale of advanced computer chips to China, escalating efforts to contain China’s tech and military ambitions. The moves are designed to cut off supplies of critical technology to China that may be used across sectors including advanced computing and weapons manufacture. The crackdown marks the most significant action by the USA against China on technology exports in decades, escalating a trade battle between the world’s two most powerful economies.
The consequences of the above-mentioned are:
Arbitrary Grounds For Imposing Sanctions
The excuse that the US has a strategic advantage in vital technologies may encourage other nations to enact similar restrictions, which might spark a trade war. The reliability of the world’s trading and financial order will be impacted by how broad these penalties are.
Neo-Colonial Characteristic
The United States’ prohibition on the sale of machinery for producing chips will not only have an impact on China but will also deprive other nations of any potential advantages. Mercantilist reasoning rather than arguments for the global public good will not strengthen the legitimacy of the order that the Americans desire to uphold.
Disruption of the Supply Chain
These penalties have the potential to increase uncertainty in international supply networks. Some nations, like India, would be drooling at the thought of taking advantage of this opportunity. However, it is likely that the rising uncertainties in the global trading system will significantly reduce these profits. China is too significant to be excluded.
Neutralizes the efforts towards climate change
It is obvious that the primary area where international cooperation is necessary i.e., climate change—is being neglected. While the superpowers are engaged in a mercantilist conflict, it is challenging to envision coordinated global action on climate change.
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