Why Chips Are at the Heart of the US–China Race (Part 2)

During the Cold War, nuclear arms were at the heart of the U.S.–Soviet Union race. Ronald Reagan once said, “Just by being there, these weapons deter others from aggression and, thereby, serve the cause of peace.” Today, the struggle between democracy and communism continues, but the focus has switched from nuclear arms to something much smaller—microchips. According to China affairs analyst Tang Jingyuan, “It has dramatically enhanced the Chinese Communist Party’s military capabilities, and it is now enough a threat for the United States.” He added, containing Beijing’s rise in the chip industry “is like pulling off Beijing’s sharpest teeth.” But with the United States and China deeply intertwined, Michael Fritsch, president at Confoe Inc., said, “It’s hard to hurt China without hurting ourselves.”