Few days ago, the Biden led administration imposed more export restrictions on China to further cut off the Asian powerhouse’s access to semiconductors. Not only do these restrictions limit China from accessing high-end chips, they restrict them from making their own. 

Driving the news 
In the file released by the US Department of Commerce Bureau of Industry and Security, the US government lists restrictions on advanced chips for supercomputer centers, certain semiconductor manufacturing equipment, specific integrated circuits and more. 

Why this matter
The restrictions follow months of effort (since July) by the United States to limit China’s access to high-end chips. The US government led by President Joe Biden is taking significant steps to collapse China’s technological capabilities by cutting its needed supplies following the tensions existing between both countries as a result of the U.S. House Speaker Nancy Pelosi and other officials’ controversial trip to Taiwan.

In case you missed it 
The US House Speaker Nancy Pelosi visited Taiwan after the Foreign Ministry of the People’s Republic of China, had threatened to carry out military action if the US Speaker and her entourage dared to visit the country. 

The Chinese government in response launched military ships and planes across the Taiwanese territories (sky and water) and even launched missiles over the island’s capital, Taipei. China, also in a show of strength, launched its largest and most aggressive live war drills in years. 

These military drills have grounded flights and disrupted shipping activities in one of the top zones known for global trade.

Regardless, the US and France further sent more lawmakers following China’s military agitation. 

What to watch 
The continuous economic agitation by the United States could force an economic or otherwise response from the Asian powerhouse. 

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