Chips And Science Act-U.S. Latest Moves To Decouple From CCP

Based on a report on October 19, the US Congress in July passed the Chips and Science Act. This is deemed as a move that backs and subsidizes US domestic manufacturing of the advanced chips and provides extensive support for domestic chip plants and semiconductor research and development. Recently, the US Bureau of Industry and Security released a detailed list of rules, including the effective extraterritorial restrictions on exports to Communist China of advanced chips, chip-making equipment and corresponding components. The rules also ban US citizens, permanent residents and companies from participating in or providing support for CCP’s programs of advanced chip manufacturing and development. The new rules cover all entities in Communist China as well as their US or foreign suppliers. Dozens of hundreds of US citizens or green card holders serving as executives and engineers in CCP’s semiconductor sector have been told by their employers to stop working. Washington would cut off Beijing’s access to the vital components of most of the technologies. As the CCP continued to publicly express its ambition to substitute itself for the US’s economic and military dominance, the bilateral relation has became increasingly confrontational. Both Democrats and Republicans supported the Chips and Science Act and agreed to take a tougher line to completely decouple the US economy from that of the CCP’s.