The United States and China’s trade battle heated up this week, with the world’s two largest economies considering additional restrictions that analysts think are a hint of more to come.
The Trump administration increased competition between the two nations by imposing new taxes and trade obstacles against Beijing.
While there have been some disagreements under the Biden administration, it was reported this week that the government is planning to restrict Chinese enterprises’ access to US cloud computing services.
According to the Wall Street Journal, the United States may soon compel cloud-service providers (such as computer behemoths Microsoft and Amazon) to obtain government approval before delivering powerful artificial intelligence processors to Chinese enterprises.
Also this week, China put restrictions on some metals used in the manufacture of semiconductor chips, posing a danger to US supply chains.
Gallium and germanium-related metals are among the metals. Semiconductor chips are critical to technical dominance and are employed not only by consumers but also by the United States military.
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According to Robert Sutter, an international affairs professor at George Washington University’s Elliott School, economic competition between the United States and China is set to heat up.
The catalyst, if you will, is that the United States has fundamentally changed its approach to China over the last six years, and it’s very competitive, he told the Washington Examiner.
Sutter went on to say that he believes there is great momentum behind this more aggressive strategy toward China, and that while huge firms may not enjoy the competition in many circumstances, it appears to be winning.
And if you’re going to do this effectively, more is needed, and so they’re going to do more, it seems to me, he added of the pressure.
Former U.S. Trade Representative Robert Lighthizer, who recently published a book on trade policy and facing China, told the Washington Examiner on Friday that he hopes the U.S.