US–China Strategic Rivalry Escalates Over Chips, Foreign Businesses Caution Investing in China

US Secretary of Commerce Gina Raimondo (L) listens as US National Security Adviser Jake Sullivan speaks during a virtual meeting with US President Joe Biden, CEOs, and labor leaders regarding the Chips Act, in the South Court Auditorium of the Eisenhower Executive Office Building, next to the White House, in Washington, DC, on July 25, 2022. Brendan Smialowski/AFP via Getty Images

The United States has ramped up efforts to deny China access to advanced semiconductors and chipmaking technologies, thus, escalating the U.S.–China strategic competition.

Following the passage of the U.S. CHIPS Act, on Sept. 6, the U.S. Department of Commerce released its “Strategy for the CHIPS for America Fund” (pdf), a $50 billion investment to catalyze long-term growth in the domestic semiconductor industry in support of the U.S. national and economic security.