The US-China technology war, which came to light with the restrictions applied to Huawei, has come to the top with mutual steps in the chip industry recently. So which sectors are affected by the chip crisis the most? Who is ahead of the competition? Which country invests how much?
The technology conflict between the United States (USA) and China reached its climax with the “chip war”. The conflict between the two countries, which was brought to the world agenda with the sanctions imposed on the Chinese technology company Huawei in 2019, has escalated again with the chip restrictions.
IS CHINA TAKING ADVANCE ON THE COMPETITION?
Chinese-made products, which were engraved in the minds as poor quality goods for a while, started to create the opposite perception after China’s breakthroughs in the digital era.
As a matter of fact, China aims to become the world’s highest technology producing country with its ‘Made in China 2025’ plan announced to get rid of the ‘country producing poor quality products’ stuck on it
Many technologists predict that China will become a major power in the near future. Eric Schmidt, former head of Google’s parent company Alphabet, argues that China will surpass the United States in artificial intelligence by 2025 at the latest.
The situation has already turned in China’s favour, according to Kai-Fu Lee, author of AI Superpowers and former head of Google China.
TECHNOLOGY COMPANIES AT THE TOP
According to the “World’s 500 Most Valuable Brands-Global 500-2022 Research” prepared by China’s International brand valuation agency Brand Finance, which could not find a place in the list of the world’s top 20 technology companies four or five years ago, it is currently on the list of 20 most valuable companies. There are 7 companies.
The USA, on the other hand, adds 9 companies to the list, and is home to the 5 most valuable companies on the list. The majority of the list consists of technology companies. Apple, Amazon, Google and Microsoft, which are in the top 4 of the list, show how important technology companies have become recently.
TECHNOLOGY COMPANIES AT THE TOP
According to the “World’s 500 Most Valuable Brands-Global 500-2022 Research” prepared by China’s International brand valuation agency Brand Finance, which could not find a place in the list of the world’s top 20 technology companies four or five years ago, it is currently on the list of 20 most valuable companies. There are 7 companies.
The USA, on the other hand, adds 9 companies to the list, and is home to the 5 most valuable companies on the list. The majority of the list consists of technology companies. Apple, Amazon, Google and Microsoft, which are in the top 4 of the list, show how important technology companies have become recently.
Nicolas Chaillan, the chief software officer who resigned from the Pentagon, said that China surpassed the USA in artificial intelligence, attracting attention as the most striking confession from the USA. “We have no chance of competing against China in 15-20 years,” Chaillan said. For now, this is a finished matter. In my opinion, it’s already over.”
According to the Information Technology and Innovation Foundation think tank, China is expected to surpass the USA in many areas, including information technologies.
A GIANT INVESTMENT OF 52.7 BILLION DOLLARS FROM THE USA
After all these developments, US President Joe Biden made an important attack on the US technology sector, which lost strength in the competition between the USA and China, with a very important move. Biden signed the “Chip and Science Act” in August, which envisions $52.7 billion in government support to increase domestic semiconductor production.
Biden said, “The future of the chip industry will be produced in America,” regarding the law, which aims to put the United States in a position where it can better compete with China in the field of science and technology.
In his speech last year, Chinese President Xi Jinping stated that technological innovations are the most important battleground in the international strategic game. China has also been making intense efforts to direct the private sector to artificial intelligence and chip studies for a long time.