America Lacks Money to Kill China Tech Tech – 17 hours ago

Jakarta, CNBC Indonesia – Competition between the United States (US) and China to dominate the technology industry is increasingly fierce. Joe Biden’s administration had previously issued a policy to block access to components and advanced chip manufacturing tools to the US.

Furthermore, the US also prohibits semiconductor manufacturers from selling AI chips to China. In fact, the US invited allied countries such as Japan and the Netherlands to implement similar policies.

Most recently, US Minister of Trade (Mendag) Gina Raimondo openly said that more budget was needed to thwart China’s progress in the semiconductor sector.

Raimondo said the US cannot allow China to gain total access to AI chips. Additionally, Raimondo urged Congress to provide the financial support needed to improve export controls.

Raimondo’s firm statement indicates that the US needs more funding to maintain national security, considering China’s growing influence.

In an appeal addressed to Congress, Raimondo expressed her frustration with the current budget allocation of $200 million, quoted from CoinMarketCap, Tuesday (5/12/2023).

Raimondo equated the costs to only buying a few fighter jets. In fact, he underlined that the current situation is critical.

He called on Congress to adequately fund chip-blocking operations. He emphasized that the struggle to maintain technological supremacy requires large financial support.

Raimondo called on US companies to adapt and support the priorities the government wants to achieve. He asked US companies to strictly comply with the rules prohibiting chip exports to China.

In her letter to the CEO of a US chip company, Raimondo admitted that blocking China would have an impact on business revenues. However, he again said that national security was more important than everything.

He specifically criticized Nvidia, the US chip giant which designs chips specifically for the Chinese market. According to Raimondo, steps to circumvent US regulations that could give China access to advanced chips will be dealt with firmly.

[Gambas:Video CNBC]

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