🚀 How Biden’s Secret Weapon Is Crushing China’s Tech Dreams! You Won’t Believe What It Is! 💥

Discover the high-stakes race between the U.S. and China for technological dominance! Explore how Biden’s surprising moves are reshaping the future of AI and semiconductor chips. Uncover the secrets behind this game-changing showdown!

In October of the previous year, a new competitive race emerged between the United States and China, and by the summer, it had reached a halfway point. Kevin Klyman, a technology policy researcher at Harvard University, observed that the Biden administration had made significant progress in garnering support from foreign partners in this race, particularly concerning semiconductor chips, which are akin to the “oil” of the 21st century and power a wide range of devices from computers to smart cars.

The race began on October 7th when President Joe Biden implemented export controls aimed at restricting China’s access to advanced chips and the machinery needed to produce them, including the cutting-edge lithography machines made by Netherlands-based ASML. Surprisingly, the Netherlands and Japan, close U.S. allies, fully embraced these export controls, which exceeded expectations.

In August of the following year, President Biden signed an executive order prohibiting U.S. Investing in three key Chinese technological sectors: semiconductors, quantum technologies, and artificial intelligence. This ban, set to take effect the following year, is expected to accelerate divestment from China by private equity and venture capital funds.

While the U.S. government has repeatedly emphasized its desire to maintain a strong economic relationship with China, the conversation with Chinese officials, including Commerce Minister Wang Wentao, inevitably focused on semiconductor chips during visits by U.S. officials. Gina Raimondo, the U.S. Commerce Secretary, firmly rejected requests to relax export controls, citing national security concerns.

China’s $18 trillion economy has been facing challenges, potentially impacting Western economies struggling with high inflation. However, experts like Klyman believe that the semiconductor battle will have far-reaching consequences, affecting China’s technology sector as a whole.

Semiconductor chips are critical to nearly all modern technology, and the industry achieved record sales of $574 billion in 2022. The U.S. is particularly concerned about chips for future weaponry. These controls are justified by their importance in training AI systems, which could be used for various purposes, including potential human rights violations and military conflicts.

AI is viewed as a general-purpose technology akin to electricity, with the potential to reshape entire economies and global power dynamics. The U.S. is keen on maintaining its position as the world’s largest economy through strategic export controls, potentially slowing down China’s progress in chip and AI development.

In the short term, it’s unlikely that China can replicate the advanced machinery needed for cutting-edge chips, such as ASML’s lithography machines, due to their complexity. However, experts believe that export controls may have diminishing returns as China seeks ways to bypass these regulations through smuggling, mislabeling, and accessing advanced chip clusters through cloud computing.

Jeffrey Ding, a professor of political science, suggests that the U.S. should focus on domestic education as a policy tool. Accelerating the training of AI engineering students could be a crucial lever in the U.S.-China tech competition, similar to the role that educational institutions played in previous industrial revolutions.

Export controls may deter foreign scientists from coming to the U.S., hindering talent cultivation. Rather than restricting access to technology, Ding argues that investing in education and immigration reform would be more effective for long-term competitiveness.

Klyman concurs, emphasizing that nurturing exceptional talent could significantly enhance the U.S. technological ecosystem. Education and immigration reform, in his view, are key to maintaining the U.S.’s leadership in AI and related fields, as people remain the essential ingredient for technological advancements.

This story was originally featured on Fortune.com