Both Washington and Brussels fear that Chinese chips in Western electronics could be used for surveillance and intelligence gathering. In response, the United States, the EU, and China have unveiled ambitious public-funded programs to strengthen their chip industries. The legislation subsidizes developers of telecommunications technology with an important condition—recipients of the federal money must not use advanced Chinese chips. The European Chips Act would pump €43bn ($46.58 bn) into research and manufacturing for European chip designers and manufacturers. New licensing requirements make it difficult to export chips from China to the United States, and to ship US equipment to China.

Source: CNN April 10, 2023 14:59 UTC