Restricting Chip Exports to China Is a Cold-War-Era Strategy
The move by the White House to keep American semiconductors out of the hands of China will hasten the unwinding of globalization.
At the forefront of deglobalization.
Photographer: I-Hwa Cheng/Bloomberg
A little-known division of the Commerce Department issued orders this month to forbid US chip companies from supplying China with cutting-edge semiconductor technologies. The directive justified the measure by citing China’s “demonstrated intent and ability to use these items for activities of national security and foreign policy concern to the United States."
So-called export controls are nothing new, having played an important role during the hottest years of the Cold War. They receded during periods of détente before falling into relative disuse after the end of the Soviet Union. Their dramatic revival — first by former President Donald Trump, now by President Joe Biden — suggests we’re on the verge of a major escalation that will further splinter the global economy.