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Semiconductors, the core of the digital economy, are now a central point of geopolitical contention. Semiconductors, or chips, are the thumbnail-size devices that enable every electronic application on the planet—from cell phones and automobiles to aircraft and satellites. Both the United States and the People’s Republic of China (PRC) view the industry as critical to economic growth, global competitiveness and national security. Recent automobile manufacturing shutdowns, driven by a shortage in the availability of semiconductors, have pushed the industry into the headlines and under a microscope.
Over the past few years, the United States has slowly tightened restrictions around key semiconductor players in China. Beijing, however, has largely held its nose, content to pour billions into building its own chip ecosystem while refraining from lashing out at foreign firms. Many analyst
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Read the original article: Will China Retaliate Against U.S. Chip Sanctions?