Open figure viewer
Significance
President Joe Biden intensified efforts to curb China's semiconductor ambitions in early December, rolling out a third wave of tech restrictions. In response, China retaliated with export curbs and antimonopoly investigations, heightening the risk of escalation leading to a full-blown trade war.
Impacts
Escalation will impose significant cost, not just on the US and Chinese economies, but to worldwide supply chains and production ecosystems.
The demand for critical material supply chain diversification will grow, but it will be difficult due to China’s ability to depress prices.
In addition to antitrust measures, US firms operating in China could face comprehensive cybersecurity reviews.
© Oxford Analytica 2024. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2024
You do not currently have access to this content.
