As Commerce Secretary Gina Raimondo was visiting China earlier this week, a sea-green Chinese smartphone was quietly launched online.
It was no normal gadget. And its launch has sparked hushed concern in Washington that U.S. sanctions have failed to prevent China from making a key technological advance. Such a development would seem to fulfill warnings from U.S. chipmakers that sanctions wouldn’t stop China, but would spur it to redouble efforts to build alternatives to U.S. technology.
The less economic and tech dependencies China has on the West, the more free they are to act on their own accord.
The US is concerned about Taiwan-- they wrote a blank cheque of support because it was a DeMoCrAcY back when China was a far weaker economy and military, and it will now be very difficult and expensive to stop reunification. Using TSMC as a shield is no doubt part of policy-- “invade and we blow the tech world back to 2010” is a viable threat until other countries get 7/5/3nm.
But their fear is more general; they are losing their economic and geopolitical dominance, and one of their big bulwarks-- advanced tech-- is giving way. They’re trying to hype up the fear and concern. Expect a lot more sabre rattling by the West.