Weaponization of U.S.-China Chip Interdependence

Abstract

This paper examines the challenges that the United States (US) and the People's Republic of China (PRC) will face following the implementation of new sanctions by the US on the Chinese chip sector to prevent the acquisition of technology necessary for the PRC to manufacture state-of-the-art chips. With these actions, Washington intends to freeze Chinese technological development at a certain level to maintain the advantage it possesses. However, such measures encourage Beijing to develop an industry that is less and less dependent on the outside world and threaten to damage US relations with both the PRC and its allies because of its dependence on the latter to effectively implement these restrictions.