US Secretary of Commerce Gina Raimondo stated that focusing on investments in domestic innovation is more effective than applying bans and sanctions on China’s chipmaking progress. “Trying to hold China back is a fool’s errand,” she said, emphasizing the importance of staying ahead of Chinese innovation.
The Biden administration’s CHIPS and Science Act aims to boost US chip infrastructure spending by over 28 years’ worth of funding. Despite this effort, President Biden pushed for bans on Chinese firms acquiring advanced tech, despite Secretary Raimondo’s assertion that it only leads to China “staying ahead” by beating the US.
According to Raimondo, the key to competition is innovation, not export controls or sanctions. The US has seen many Chinese companies acquire banned chips through black markets, highlighting the challenges of enforcing sanctions. However, Raimondo believes regulations should still be in place to prevent US companies from acting with impunity.
The upcoming administration’s stance on the CHIPS Act remains uncertain, but President Trump plans to expedite permits for companies investing over $1 billion and potentially waive some regulations. This could attract major investments like SoftBank’s $100 billion commitment to AI technologies in the country.
Source: https://www.tomshardware.com/tech-industry/holding-back-chinas-chipmaking-progress-is-a-fools-errand-says-u-s-commerce-secretary