Chinese industry experts have denounced the latest US chip restrictions on China as President Joe Biden's "final act of irrationality" before leaving office, with the measures taking effect just ahead of the Chinese Spring Festival.
Comprehensive restrictions target advanced technology
The new controls specifically target 16/14nm processes and, for the first time, include packaging and testing OSAT companies in the prohibition list, creating unprecedented impact across all levels of the semiconductor supply chain. These expansive measures reflect Biden's deep concerns about China's advancement in high-tech fields such as AI, semiconductors, and biotechnology. While the US has historically maintained technological superiority to preserve its dominance, China's rapid progress in technologies like 5G and AI has emerged as a direct challenge to this position.
Political pressures shape policy
The intensification of restrictions during Biden's final weeks stems from a combination of domestic political pressures, economic competition, and international relations considerations. Both the Democratic and Republican parties maintain a hardline position on China, compelling Biden to implement stringent policies influenced by both his foreign policy objectives and Republican pressure. This tough stance against China serves as a crucial strategy for the Biden Administration to maintain Democratic support.
Legacy concerns drive final actions
As the 82-year-old Biden approaches the end of his presidency, he appears increasingly focused on cementing his historical position on China. The possibility of Donald Trump's return to power has seemingly accelerated these actions, as Trump could potentially reverse Biden's policies. These recurring restrictions may represent Biden's significant political legacy on the global stage, marking his final effort to strengthen America's international position before the transition of power.
Uncertain future under new administration
Biden's approach has established a tiered constraint system distinguishing between "allies," "non-allies," and "hostile camps." However, questions remain about whether Trump will maintain these alliance distinctions after his anticipated 120-day policy review period.
Impact on global relations
Industry observers warn that these swift and intensive actions by the US carry long-term risks and consequences. The policies are expected to further strain US-China relations, disrupt global supply chains, and increase market uncertainty. While some analysts suggest these restrictions effectively signal the US commitment to maintaining technical dominance, others caution that excessive measures could accelerate economic decoupling between the two nations, potentially harming the global economy.
In this environment of intensifying great power competition, Taiwan faces the challenge of carefully navigating between conflicting forces, requiring a balanced approach that combines wisdom with strategic acumen.