#USChinaTensions

#USChinaTension Are U.S. Restrictions Driving China to Dominate the Chip Market?

In an effort to hinder China's progress in the technology sector, the United States has imposed strict restrictions on the export of advanced computer chips to Beijing. However, contrary to expectations, analysts believe that this move may lead to counterproductive results, enhancing China's independence and its ability to innovate in the semiconductor field.

In this context, tech expert Jack Gold stated to the French Press Agency: "The United States is giving China a strategic gift, as it pushes Chinese companies to accelerate their efforts and develop their local industry." He added, "Once these companies become capable of producing competitive chips, they will begin exporting them globally, and consumers will find a competitive-priced alternative, making it difficult for U.S. companies to regain their market position."

These repercussions have already begun to appear as both "Nvidia" and "AMD" announced forecasts of huge financial losses due to the new rules. According to documents submitted to the U.S. Securities and Exchange Commission, "Nvidia" may lose about $5.5 billion, while "AMD" expects a decline in its profits of up to $800 million.

Amid these challenges, it seems that U.S. sanctions may accelerate China's rise as a major force in the electronic chip market instead of slowing its progress.