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US Tech Firms Barred From Making ‘Advance Technology’ Factories In China For Ten Years

US firms that get federal funds will be restricted from creating advanced technology companies in China for at least a decade. The news was recently confirmed by a spokesperson for the Biden administration.

These guidelines were recently made public as a part of the mega $50 billion project that’s targeted to make the country’s semiconductor industry stronger.

The news comes as more and more business groups have reportedly pushed forward for a greater amount of support from the government to help limit the great reliance that the US has on China.

Many companies in the US are now facing a mega shortage of microchips and that has resulted in slowing down the production process. Hence, now, more measures are being taken to prevent such incidents from arising in the future.


The country’s Commerce Secretary highlighted that from now on, anyone receiving funds for CHIPS would not be compromising or threatening American national security. They will not be allowed to help China by building state-of-the-art facilities in those nations or investing any funds in the country for a certain amount of time.

Those firms getting the funds would only be allowed to expand their mature factories in the country to better serve China’s market.

The news is not too surprising for many people. After all, both the US and China are being dragged into a long dispute regarding both trade and other technological aspects. For starters, American chip producers have been affected by a new export rule by China.

Secondly, America tried to tackle China by making a mega technological investment. And lastly, there are concerns that China has with the UK stepping in to buy out its factories.

This past month, we saw American President Joe Biden sign a new rule that allocated billions of funds for the purpose of research and high-end manufacturing in the tech industry. This was after great fears grew linked to America slipping away and losing out to China in the tech world.

Some investments were related to tax breaks for firms that create computer chip production companies in the US. At the moment, America is currently making around 10% of the world’s supply of semiconductors. And that’s the key to producing a number of pivotal goods and services like mobile devices and automobiles.

But China’s Embassy in the US was seen opposing the semiconductor bill and called it a mentality that was brutal like the Cold War. So as you can see, the tensions between both nations are running high.

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