The New Tech Cold War? Decoding the US-China Tech Battle over AI and Semiconductors

BIPSS Research Assistant Saraf Wasima explains the growing Tech Cold War between the US and China, focusing on artificial intelligence (AI) and semiconductors. She shows how China’s Made in China 2025 plan aimed to become a tech leader, which worried the US. In response, the US put sanctions on Chinese companies and passed the CHIPS Act to support its own chip industry. Taiwan’s chip company TSMC is at the center of this conflict because it makes most of the world’s advanced chips.

She compares the US’s tech progress, driven by companies like Google and Microsoft, with China’s government-backed efforts. Both countries are using AI in military technology and cyber defense. Even with US restrictions, China is trying to build its own tech system and forming partnerships with other countries.

She discusses this tech rivalry is changing global trade and forcing countries to take sides. The future will depend on whether the US and China choose cooperation or continue their competition, which could divide the world’s technology.