Washington and Beijing: The Peak of the Technological Dominance Battle!!

Talal Abu-Ghazaleh

The relationship between the United States and China may be approaching a critical juncture. The truth is that the confrontation between the two countries goes beyond trade disputes, and is evolving into a real scuffle to shape the future. Each side asserts itself as the dominant economic power and the rightful shaper of the future world order. At the heart of this conflict lies the pivotal field of technology and innovation, where the two nations aggressively compete for dominance.

In the current scene, competition between the two countries is definitively centered around the production of processors, a field characterized by unparalleled complexity, particularly as this shift has gained increasing importance against the backdrop of COVID-19 pandemic. The crisis has had a profound impact on the processors industry, where the complex web of semiconductor supply chains-which serve as the lifeblood of technological innovation- found itself severely disrupted.

While the two global powers maneuver through the complexities of this high-stakes competition, the processor industry emerges as a pivotal point, which does not only symbolize the current technological rivalry but also encapsulates the broader narrative of post-pandemic recovery and the recalibration of global economic dynamics. The battle for supremacy in processor production has become a symbol of the challenges and opportunities awaiting us in reshaping the technological landscape following the unprecedented global disruptions.

In the context of this conflict, the administration of President Joe Biden has intensified its efforts, with a direct focus on the Dutch company ASML Holding to cancel a deal for the sale of advanced electronic chip manufacturing equipment to China. This move by the U.S. administration is a direct response to a prior request from China, which led to the activation of a ban on exporting such vital technology to the Asian country.

While the United States justifies its strict stance by pointing to the necessity of adopting strict policies against Chinese technology companies, citing concerns about the intertwining of Chinese technology with state apparatus, especially military capabilities, which could lead to global espionage activities, China strongly rejects the measures imposed by the United States, as such measures are specifically designed to restrict China's access to advanced chip manufacturing technology. The outlines of this conflict reveal deeper points of tension between the two countries, approaching their peak.

So, the dispute over access to advanced chip manufacturing technology has become a focal point, around which the broader complexities in the bilateral relationship crystallize. It sums up a deeper conflict between strategic interests, economic competition, and global geopolitical influence.