Chip poker no more

The Trump administration was quick to throw a bucket of cold water on sparks of hope that US-Chinese trade tensions might simmer down in these trying times. After all, it wasn’t unreasonable to assume a quid-pro-quo deal had been hammered out when TSMC announced its intention to build an advanced fab on American soil. The US would have its domestic semiconductor manufacturing base strengthened, while the Taiwanese foundry would be allowed to keep supplying Chinese companies. Less than half a day later, however, the US Commerce Department unveiled new rules that require any chipmaker using US technology to obtain a license before supplying Huawei and affiliates.

This doesn’t feel like a game of high-stakes chip poker anymore. The US isn’t bluffing to force concessions – it’s hell-bent on stopping the Chinese technological advancement in its tracks. Expect more of this, with or without Trump at the helm. The concerns in the US over China’s rise on the world stage as well as reliance on Asia for strategic technologies reach far beyond hawkish Republicanism. Tellingly, the Democrats have been silent on it, which in the current polarized political climate is the same as support. And these days, Trump trades blows with presidential candidate Joe Biden about who is too soft on China.