The Biden administration is engaged in an all-out economic war against China, aimed not only at curbing trade but above all at blocking China’s ability to make advances in key hi-tech areas and compete with the US.

President Joe Biden speaks outside Independence Hall, Thursday, Sept. 1, 2022, in Philadelphia. [AP Photo/Evan Vucci]

Last month Biden took the unprecedented step of banning the sale of the most advanced semi-conductors to China, as well as the equipment needed to make them. US citizens are also prohibited from working for Chinese computer chipmakers.

While the US has imposed the bans in the name of “national defence,” semi-conductors are essential not just for military applications but for virtually every aspect of modern society, from electronic products and transport to the design and production of all manner of goods.

The dependence of China, the world’s largest manufacturer, on semi-conductors is highlighted by fact that it spends more on imported computer chips than it does on oil and gas. In 2021, China imported a record $414 billion worth of computer chips, or more than 16 percent of the value of its total imports.

While the US bans do not apply to the sale of all semi-conductors to China, the embargos apply to the latest generations of computer chips that are crucial to technological areas, such as artificial intelligence, supercomputing and automation. Washington is deliberately seeking to undermine China’s ambitious “Made in China 2025” plans to rapidly become a global leader in a range of hi-tech industries, including artificial intelligence, 5G wireless and quantum computing.

Biden’s escalating economic war against Beijing is integral to US preparations for military conflict with China. Even as the US and its NATO allies recklessly wage war against Russia in Ukraine, the recently released US National Security Strategy identifies China as “the only competitor with both the intent and, increasingly, the capability to reshape the international order.”

The dangers of Biden’s semi-conductor ban on China have been all but hidden from the working class in the US and internationally. However, in economic and strategic circles, the immense implications are clearly understood. An October 19 Financial Times article by Edward Luce, entitled “Containing China is Biden’s explicit goal,” sounded the following alarm: “Imagine that a superpower declared war on a great power and nobody noticed. Joe Biden this month launched a full-blown economic war on China—all but committing the US to stopping its rise—and for the most part, Americans did not react.


By admin

Leave a Reply

Your email address will not be published. Required fields are marked *