US Bans 'Advanced Tech' Firms from Building Factories in China

    Photo: Bloomberg/Getty Images [via Tech Crunch]

    The Facts

    • In a $50B plan to build up the US semiconductor industry, the Biden admin. announced on Tues. that American tech companies who receive federal funding will be barred from building "advanced technology" facilities in China for 10 years.

    • Congress approved the US Chips and Science Act in August, which allocates $280B to high-tech manufacturing and scientific research as US firms demand more government support to reduce their reliance on components produced in Chinese factories.

    The Spin

    Anti-China narrative

    The Biden admin.'s focus on strengthening US semiconductor and microchip production is essential to securing America's national interests. As China threatens its neighbors in East Asia - who happen to be the US's main sources of semiconductors and microchips - it's essential that Americans get the upper hand domestically in this sector.

    Pro-China narrative

    American attacks on Chinese advanced technology products are a political stunt that will only serve to weaken the US and strengthen China. While PRC innovation may be slowed in some fields in the short term, Beijing has shown its technological prowess with its advancements in 4G and 5G information technology, high-speed railway technology, and the aerospace industry. China's tech sector is resilient.

    Establishment split



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