China will intensify response to US tech restrictions

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.