First it was TikTok, now a proposed $US40 billion deal by America's Nvidia to buy a chip design company will create new tensions between the US and China | Stephen Bartholomeusz
The collision between the US and China over the Trump administration’s attempts to frustrate or corral China’s technology ambitions may have a new front, even as an existing battle over competition national interests is nearing its conclusion.
The biggest weakness in China’s technology armoury is semi-conductors. It is heavily reliant on foreign chip design and manufacturing, where the US is dominant. A key element of its latest five-year plan is a massive effort to increase research and development and funding for the domestic production of "third generation semi-conductors seen as critical to every aspect of its technology ambitions.
While the Nvidia deal has yet to run the gauntlet of regulatory and political clearances, the fate of TikTok in the US will be resolved within days. Technology, particularly the technologies that will underpin the 5G networks and internet of things that will shape economies this century, is the new battleground for national supremacy with the US trying to defend and entrench its leadership and China trying to challenge it.
Oracle’s co-founder and chairman Larry Ellison has conducted fundraisers for Trump’s re-election campaign and its chief executive, Safra Catz, has been a significant donor to the campaign and was a member of the Trump transition team in 2016. Ellison has also been enthusiastically supportive of Trump’s controversial advocacy of hydroxychloroquine as a treatment for the coronavirus.
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