China has criticized the Biden administration’s decision to impose new restrictions on advanced chip exports, calling them a violation of the principles of a market economy and fair competition. These restrictions, targeting chipmaking tools and advanced chips, are aimed at preventing China from accessing cutting-edge technologies it could use to strengthen its military, particularly in artificial intelligence. Beijing characterizes these moves as “forced de-coupling for political purposes.” These measures have affected the stock markets in both countries, with Chinese semiconductor-related firms and AI companies seeing declines. Nvidia is particularly affected, with the restrictions blocking sales of its high-end artificial intelligence chips developed for the Chinese market. In response, China has imposed export restrictions on materials key to the semiconductor industry. This ongoing back-and-forth has raised concerns about “resource nationalism,” where governments hoard critical materials to exert influence over other countries.
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