China’s Restricted Access to Advanced Microchips
The Commerce Department’s Bureau of Industry and Security implemented export controls last year, restricting China’s access to advanced microchips, which it claimed could be used to develop cutting-edge military systems using AI algorithms.
Following that, the Biden administration persuaded the Netherlands and Japan, both advanced in semiconductor technology, to implement their export controls on microelectronics exports to China.
China’s development of advanced AI algorithms could influence military decisions that require high-performance supercomputers. However, China’s capability to build such supercomputers has needed to be improved by the export controls on semiconductors.
Advanced chips and technology also play a crucial role in developing civilian technologies such as weather forecasting and vaccine development.
Schumer said he appointed the Senate Foreign Relations Committee chairman Bob Menendez (D-N.J.), and Banking Committee chairman Sherrod Brown, D-Ohio, to consider other legal options the Biden administration could use to broaden its export control policy against China.
Global leader in Artificial Intelligence
China announced its goal of becoming a global leader in artificial intelligence by 2030, followed by the ambition to make its military, the People’s Liberation Army, on par with the U.S. military by 2035.
However, the United States export controls and the forthcoming legislation from the Senate aim to disrupt these plans, Schumer said, adding that they want to limit the flow of investment to the Chinese government.
“It is compulsory on us to ensure that the U.S. is not the financial lifeblood supporting the Chinese government and its military technological advancement,” he said.
Schumer said the upcoming bill seeks to enhance the legislation passed by Congress last year to reduce dependence on China for decisive supply chains related to the defense industry, such as semiconductors and essential minerals.
The previous legislation comprised annual subsidies of about $52 billion under the CHIPS Act and tax benefits until 2026 to motivate semiconductor manufacturers from the United States and Asia to develop microelectronics domestically.
Senator Jeanne Shaheen (D-N.H.) said the government should expand upon those investments to position themselves to compete effectively against the People’s Republic of China in the way they need to.
Pacific Allies
Schumer urged the community to discourage the Chinese government from conflict with Taiwan. He said the new bill would also focus on closer alignment with allies and security partners in the region.
Meanwhile, the majority of advanced microchip production is centered in Asia. As a result, the U.S. cannot produce the world’s top semiconductors necessary for precision-guided munitions and the F-35 fighter jet.
The Taiwan Semiconductor Manufacturing Co. plans to open a factory in Arizona by 2026 using subsidies from the CHIPS Act and would begin producing the world’s most advanced semiconductors. Taiwan makes approximately 92% of the world’s most sophisticated semiconductors.
Schumer expressed his proposal to revisit a Taiwan bill approved by the Senate Foreign Relations Committee last year. In addition, the fiscal 2023 National Defense Authorization Act included a $10 billion Taiwan military aid authorization from the account.
However, the security assistance has yet to be funded by congressional appropriators. In addition, some parts of the bill did not become law due to the White House’s concerns. These components included imposing sanctions on China for acts of aggression against Taiwan and upgrades to the island’s diplomatic status.
According to Jack Reed, the Senate Armed Services Committee Chairman, the CHIPS Act has made the military-industrial base more secure.
Reed said that the upcoming China bill aims to strengthen security cooperation in the Asia-Pacific region by enhancing existing mechanisms such as the AUKUS agreement and the Quad, which includes Japan, India, and Australia.
He added that the aim is to form a unified force structure by bringing together all allies capable of uninterrupted operations and communication.
“The objective is to make it clear to China that they would face the entire world if they attempted anything, rather than just one country or group of countries,” Reed said.
Arming Taiwan
According to reports, the House Select Committee on the Chinese Communist Party is developing several bipartisan recommendations to quickly equip Taiwan with weaponries and bolster cybersecurity with Taipei.
House Select Committee on the Chinese Communist Party Representative Mike Gallagher (R-Wis) expressed his plans to include a series of bipartisan proposals to enhance cybersecurity with Taiwan and rapidly arm the country as amendments to the FY24 NDAA.
—
** Click here for some interesting reading on Chinese industrial espionage.
