The USA has commenced a ‘tech-war’ against China. Back in August, US President Joe Biden had signed the Chips and Science Act, under which an investment of 52 billion dollars was made to promote the development of the production of semi-conductors in the country. The Inflation Reduction Act was also passed in the same month, which included providing subsidies to the electric vehicles produced in the USA. The aim behind the same was to bring back the supply-chains to the USA from China.
In October, Biden had announced unprecedented restrictions on tech-export, behind which his objective was that Chinese companies should not get access to advanced semi-conductors, made with American equipment and techniques, from anywhere around the world. With this step, the USA wanted to curb China, along with which, wanted to increase the USA’s potential, which would lead to the further strengthening of the army and in cyberspace.
Those who fight wars usually look out for allies and supporters, the same being the reason why the USA is not inkling towards its Asian friends, so that the latter can be mobilized against China in its tech-war. These allies are Japan, Singapore, South Korea, and Taiwan. Taiwan is the producer of 90% of the world’s semi-conductors. Also, for many months now, the USA has been asking Japan, which itself is a renowned name in the field of technology, to announce a tripartite with the USA and the Netherlands. The Netherlands is home to ASMS, which provides equipment of foundational importance for the chip-manufacturing sector.
But on the other hand, what is being looked at as a two-way war by the USA, can create trouble for its Asian allies. They are not comfortable with the fact that the USA, in its struggle with China, is trying to mobilize them in its favour. If they agree for the same, then they will surely have to pay its price. For instance, chip-making equipment is Japan’s second-largest resource of export, the 1/3rd of which goes to China. Recently, a Japanese officer said to his American counterpart that it was not necessary that the USA’s and their own interests will be the same.
