Source: The post is based on an article “US sanctions targeting China’s semiconductor industry are a gamble aimed at maintaining American hegemony” published in The Indian Express on 20th October 2022.
Syllabus: GS 2 – International Relations
Relevance: US-China bilateral relations and its effect on the world order
News: The US has recently come up with tough export regulations targeting China’s semiconductor industry. These barriers are affecting other countries as well.
What are the reasons behind imposing such sanctions?
Hegemony: America wants to maintain its hegemony by imposing sanctions on China. This sanction may also benefit the allies of America. However, it will impact the global trading and the financial order as economy today is interdependent.
Humiliation: America has come up with the sanctions just before the Party Congress in China to humiliate it. It also shows neo-colonial mentality of America. However, it is expected that China will also retaliate.
What will be the consequences of such sanction?
Partnership: The current sanction will further degrade the relationship of US-China. Moreover, it can also improve the partnership of other countries with the US as countries around the world is looking forward to import technology and finance from the US. This sanction can also see China’s increasing effort towards BRI, etc.
Global supply chains: The sanction will affect the global supply chain order and create uncertainty. It may create opportunity for countries like India but the gains from this opportunity will not be much as it will affect the world trading system.
Strategic consequences: China poses a threat to invade Taiwan but invading Taiwan will be determined by military the possibility of its success. So, it is not clear whether American steps can weaken China or can affect the technology development in China.
Climate change: It is the most pressing issue that require global attention. However, this issue has now gone into backyard.
Therefore, there are multiple angles of these sanctions and it is tough to come to a conclusion of the consequences. However, one consequence of the sanction is very clear that is the disruption in the global trade.