China’s Technological Gap with the U.S.
In a recent interview on CBS News’ “60 Minutes,” Commerce Secretary Gina Raimondo stated that despite a chip breakthrough by China’s Huawei, the country still lags behind the United States in critical technology. Raimondo emphasized that the Biden administration’s chip export policies are effective, and the U.S. will continue to prioritize national security when it comes to semiconductors.
U.S. Superiority in Semiconductors
Raimondo highlighted that the United States possesses the most advanced and sophisticated semiconductors globally, while China’s capabilities are significantly inferior. She stressed that the U.S. has out-innovated China and remains years ahead in this critical sector.
Despite Huawei’s release of the Mate 60 Pro smartphone, which featured a 5G-capable chip, Raimondo asserted that the U.S. export controls implemented in late 2022 have made it challenging for China to acquire advanced chip technology. The phone’s launch coincided with Raimondo’s visit to China, during which Chinese-linked hackers reportedly accessed her email. Raimondo stated that these incidents demonstrate the U.S.’s vigilance in protecting national security and businesses.
U.S. Restrictions and Chinese Reactions
Following the release of the Mate 60 Pro, the U.S. has further tightened restrictions on the sale of advanced semiconductor technology to China. Chinese officials have repeatedly criticized these policies, which require licenses for companies worldwide to sell products with advanced U.S.-designed chip technology to countries considered adversaries. Many U.S. chip companies, heavily reliant on China for business, have also expressed concerns about potential market access loss.
Raimondo clarified that while the U.S. seeks to maintain trade relations with China for most goods and services, technologies impacting national security will remain restricted. The global chip race intensified after Russia’s invasion of Ukraine in 2022, prompting the U.S. and its allies to tighten export controls on advanced technology. It was reported that Russia obtained advanced Western technology through intermediary countries like China. Raimondo acknowledged that U.S. export controls have hindered Russia’s ability to conduct the war and that Russia has sought alternative chip sources.
U.S. Investment in Domestic Semiconductor Industry
The U.S. Department of Commerce has overseen the allocation of nearly $53 billion through the Biden administration’s Chips and Science Act. This initiative aims to bolster the domestic semiconductor industry and compete with rivals such as China. In recent weeks, significant grants and loans have been designated for chipmakers like Taiwan Semiconductor Manufacturing Co., Samsung Electronics, and Micron Technology, all of which are expanding production capacity in the U.S.
Raimondo confirmed that all grant money allocated for the Chips and Science Act will be disbursed by the end of the year. The U.S. remains committed to strengthening its semiconductor industry, safeguarding national security, and maintaining its technological edge over China.
