US-China tech war & rivalry

Instead of supporting the US tech war on China, the European Union could take the lead in finding pragmatic solutions to the security problems posed by new technologies that other states can implement.

Imposing trade restrictions to address national security concerns is at the heart of heightened US-China tensions. The two countries should establish new agreements on arms control and industrial policies, which will require rebuilding trust.

No thanks to Tsai, TSMC is waking up to the danger of Washington’s ‘friendshoring’ of its most advanced chip-making capabilities.

China has perhaps more to lose than the US but in economic wartime, national interest and economic security concerns can triumph over reason. Besides, China has a ‘secret weapon’: it can devalue the yuan

The world economy now is fraught with risk, but not the dangers Washington is hallucinating. Those truly concerned about supply chain risks would be drawing lessons from the pandemic and climate change, instead of pointing fingers at China.

Despite a slight thaw in relations, Beijing’s new ambassador to Washington can have no illusions about the challenges that lie ahead.

By singling out Micron, Beijing is sending an unmistakable message: companies aiding and abetting Washington should think twice.

A few years ago, China appeared well placed to threaten the US’ technological lead, but the advent of large language models is a game-changer. New draft rules covering chatbots, on top of the existing censorship regime, will constrain the ability of China’s tech companies to develop generative AI.

The same Americans banning semiconductor sales to China are now outraged at Beijing’s partial block on those supplied by a US company.

In recent remarks, the US Treasury secretary and national security adviser have described US export controls targeting Chinese tech sector as narrow in scope. Washington seems to understand that overly broad restrictions in the name of national security will hurt the global economy and provoke Beijing.

Not only is TSMC hugely profitable, it is growing exceptionally fast and has a virtual stranglehold on the global semiconductor supply chain. Sentiment towards TSMC remains bullish, thanks in part to the firm’s strong fundamentals and relatively cheap shares from a geopolitical discount.

Biotech is especially important given the ageing population and economic ambitions of Hong Kong – and China as a whole. For the world, biotech protectionism will lead to more expensive treatments and greater health insecurity.