The history and limits of America’s favourite new economic weapon

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The history and limits of America’s favourite new economic weapon
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America has ramped up controls on technology trade with China

October 7th, an American official published 139 pages of regulations on a website called the Federal Register. Across East Asia, from Taipei to Nanjing, semiconductor executives panicked. The American government was claiming jurisdiction over every line of code or machine part that had ever passed through the United States, and over the activities of every American citizen, everywhere on the planet.

Meanwhile, America was also building a case against Huawei, a booming Chinese telecoms-equipment manufacturer which it had long suspected of embargo-busting, and of being a conduit for Chinese government spying. Discomfort with Chinese technological prowess deepened with the arrival of the Trump administration’s China hawks in the White House in early 2017.

This not only infuriated the Trump administration, it also annoyed companies that manufactured products in America. Huawei’s inclusion on the Entity List discriminated against them. American chipmakers started lobbying for changes. If firms could be prevented from using American technology to supply Huawei from anywhere in the world, operations based in America would no longer be at a disadvantage. By August 2020, with presidential elections looming, officials had worked out the kinks.

s cut off Russia’s military-industrial complex from all American elements of global technology supply chains, as part of a huge package of sanctions put in place by America and its allies.

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