The 'great uncoupling' of the U.S. and China?

America is tightening the vise on China's technology ambitions

A microchip.
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The U.S. moved last week to tighten the vise on China's technology ambitions with a "one-two punch of industrial policy" said Ana Swanson at The New York Times. First, Taiwan Semiconductor Manufacturing Co., one of three companies in the world capable of making the most advanced microprocessors, announced it would build a $12 billion plant in the United States, a longtime White House goal. A day later, the U.S. issued a rule that effectively "bars companies around the world from using American technology" to create any products shipped to the Chinese telecom giant Huawei. That puts "survival at stake" for Huawei, a company China sees as a national tech champion. The new plant and the divorce from Huawei effectively pull TSMC — which also fabricates chips for Apple and Qualcomm — into the U.S. orbit, bringing it closer to "becoming a trusted member of the U.S. military's supply chain" while locking China out of crucial advances. That TSMC is based in Taiwan, whose sovereignty China rejects, adds "a dash of geopolitical insult to the injury."

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