The US technology war

The U.S. Congress is considering not renewing a key science and technology agreement with the world's second-largest economy that would restrict the country's technological and military advancements.

Accordingly, the Science and Technology Treaty (STA), which has existed for four decades between the US and China, may be suspended as Washington believes Beijing could exploit its provisions to modernize its military and threaten national interests.

The STA was signed when the US and China established diplomatic relations in 1979 and has since been renewed every five years. It also serves as a bridge paving the way for cooperation between the two countries in fields ranging from atmospheric science and agriculture to fundamental physics and chemistry research.

The technology war between the world's two largest economies is intensifying.

This agreement is scheduled to expire on August 27th of this year, raising concerns that American scientific and commercial achievements could be stolen, amid bilateral relations and trade between the two superpowers being at their lowest point in years.

A House China committee has sent a letter to Secretary of State Antony Blinken expressing concern about joint science and technology projects between the two countries that utilize many "dual-use" technologies such as satellite imagery analysis and the use of drones for irrigation management.

The letter cites an incident that occurred in February of this year when Beijing was accused of “monitoring military sites on US territory” using balloons employing technology identical to that in a project between the China Meteorological Administration and the US National Oceanic and Atmospheric Administration under the STA framework.

Meanwhile, supporters of the agreement argue that without the STA, the U.S. would lose a crucial channel of information about China's technological advancements. However, commentators generally agree that the agreement needs fundamental revision to protect Washington's interests in its strategic interactions with Beijing.

The semiconductor "encirclement" is tightening.

For its part, China is reeling under pressure from the US-imposed restrictions on chip exports last October. Mainland analysts say the US is waging a technology "war" against the country. If the STA (Standard Operating Procedure) is not renewed, it would be seen as an escalation of the conflict between the two sides.

In February 2023, a Chinese balloon was shot down in US airspace.

The Wall Street Journal reported that the U.S. is considering new restrictions on the export of artificial intelligence (AI) chips to China, causing shares of companies like Nvidia and Advanced Micro Devices to plummet almost immediately.

Accordingly, the Ministry of Commerce will stop issuing export licenses for chips manufactured by Nvidia and other chip manufacturers to consumers in China as early as July.

The Biden administration makes no secret of its desire to control the export of certain advanced chips that it believes have military applications and are used in systems that threaten the U.S. and its allies.

Semiconductors, an essential component of most electronic devices, have become a key battleground in the dispute between Washington and Beijing over access to critical technology. These chips are used in a wide variety of systems, from fighter jets and mobile phones to household appliances like refrigerators.

The US campaign to "decouple" China from the global semiconductor supply chain is currently on track. The latest information indicates that the Netherlands may announce further export controls on certain types of chip foundry machines from ASML on June 30th. Prior to this, Japan also added 23 semiconductor items to its list of restricted exports.

((According to EurAsian Times, Reuters)

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