- Semiconductors, also known as microchips, are essential for powering modern technologies.
- The semiconductor industry is worth $574 billion and is expected to surpass the trillion dollar mark by the end of the decade.
- US trade restrictions have impacted semiconductor companies like NVIDIA, leading to a significant drop in sales in China.
- China has heavily subsidized its semiconductor industry in an attempt to achieve self-reliance.
- The US has introduced export restrictions to limit China's access to advanced AI chips, citing national security concerns.
- China's response has included slowing down mergers and imposing export restrictions on certain metals.
- Semiconductors are crucial for artificial intelligence applications, which is a major concern for the US.
- The US wants to maintain its technological edge, especially as China strengthens its military capabilities.
- The financial impact on US companies has been felt by equipment manufacturers and tech companies.
- NVIDIA was initially able to work around export restrictions by producing slightly less advanced chips, but new rules have closed that loophole.
- The restrictions may not have an immediate impact on NVIDIA's financial results, but could affect product development and operations.
- Additional controls may accelerate China's path to self-sufficiency in chip manufacturing and pave the way for a global market dominated by Chinese chips.
- Huawei's release of a smartphone containing an advanced chip made by China's largest chip maker raises questions about the effectiveness of export controls.
- The chip made by Taiwan's semiconductor manufacturing company is considered more advanced than the one used by Huawei.
- The reduction in nanometer size can result in more powerful and efficient chips.

- U.S. controls have slowed down China's technological development, but haven't permanently stopped it.
- Artificial intelligence (AI) is a race between the U.S. and China, with both countries battling for technology supremacy.
- China sees AI as essential for leapfrogging U.S. military capabilities.
- Further sanctions and export restrictions may be imposed in key technology areas like AI and semiconductors.
- A world dominated by China in critical technologies, particularly AI, is undesirable.
- China will continue efforts to strengthen its semiconductor industry and advancements in AI.
- The tech war between China and the U.S. may lead to a bifurcation of Chinese and American-led technology worlds.
- Companies caught in the middle will have to navigate uncharted territory and establish new ways of doing business.
- Governments can force tech firms to change their business models based on security priorities.
- The U.S. needs to maintain its lead in AI and deny China the technology it needs to advance its military.

Smartphones. Cars. Toasters. Fighter jets. While vastly different on the outside, all four items share something similar on the inside: semiconductors.

"There's no tech industry without semiconductors," said Stacy Rasgon, senior semiconductor analyst at Bernstein Research.

Semiconductors represent a $574 trillion industry globally and are on pace to cross the trillion-dollar mark by the end of the decade. The industry has been caught in the crosshairs between the U.S. and China, two of the world's largest economies.

The U.S., which leads the world in global semiconductor market share, recently issued sweeping restrictions on the sale of advanced chips and chipmaking equipment to China, in an attempt to restrict Beijing's access to critical technologies. The Biden administration has said the export controls are aimed in part at preventing the use of American-made chips in China's military. China, meanwhile, has accused the U.S. of abusing export restrictions to impede the country's technological advances.

"We cannot allow China to have our most sophisticated semiconductor chips for use in the Chinese military," U.S. Secretary of Commerce Gina Raimondo said in an interview with CNBC on Oct. 30, 2023. "That's where we've drawn the cut line."

Watch the video above to find out more about how the semiconductor industry became the centerpiece of a technological tug-of-war between the U.S. and China, and what the potential implications are for companies caught in the middle of it all.

Chapters:
0:00 Introduction
1:37 The race for technological supremacy
4:48 The battle over chips
6:31 Impact of U.S.-China tec war
10:34 What’s next?

Produced by: Jeff Huang
Edited by: Kevin Heinz
Graphics by: Christina Locopo
Narrated by: Jordan Smith
Supervising Producer: Jeff Morganteen
Additional Footage: Getty Images, Reuters

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How The Escalating U.S.-China Tech War Could Hurt American Companies

Smartphones, cars, toasters, and fighter jets.

Can you guess what all of these have in common?

They're all powered by advanced semiconductors, also known as microchips or chips for short.

They're often regarded as the brains powering modern technologies.

Microchips or semiconductors are incredibly important technologies.

They are in things from refrigerators all the way to cars and the smartphones we use on a daily basis.

The entire technology industry, semiconductors is the fundament of all of that.

There's no tech industry without semiconductors.

A $574 billion industry on pace to cross the trillion dollar mark by the end of the decade now caught in the crosshairs between 2 of the most powerful nations in the world.

Trade restrictions continuing to make an impact on semiconductor companies such as NVIDIA.

NVIDIA's CFO warning that China sales will drop significantly in the fourth quarter.

The Biden administration is trying to cap China's access to advanced AI chips.

But that said, are these curbs too little too late?

They're getting increasingly sophisticated and are going to be needed and required to power and underpin some of the artificial intelligence applications that we know about going forward.

So just how did semiconductors with transistors on the most advanced chips now measuring the size of a single DNA strand become the centerpiece of a technological tug of war between the United States and China.

And what are the potential implications for companies caught in the middle of it all?

You want to understand the chip war over the last decade, China is the player that made the first move by very heavily subsidizing its industry and trying to achieve independence.

Semiconductors became a central area of competition between the United States and China during the last decade, when China's desire to become self-reliant in the sector changed the competition from 1 between companies to a rivalry between 2 of the world's largest economies.

2014 was a key inflection point when the Chinese government released a number of new policy documents targeting semiconductors as what they call a core technology.

And Xi Jinping, the Chinese leader, has given a number of speeches starting in that year, highlighting chips as central to China's efforts to become self-sufficient in technology.

China's semiconductor industry is quite behind other major tech powers like the US, Japan, South Korea and Taiwan.

It relies heavily on foreign technology to boost its own domestic semiconductor industry as well.

And so China looks at the chip industry and sees extraordinary vulnerabilities because it has to import high-end chips for its PCs, for its smartphones, for AI training from countries that are competitors.

Since then, China has set up a series of vast subsidy funds from the government and state linked private equity firms, measuring in the hundreds of billions of dollars, all with the goal of boosting the Chinese chip industry.

That's been the dominant strategy of China over the last decade.

Keep spending huge sums each year trying to build up China's manufacturing capacity and the level of technology.

And that's primarily the focus of Chinese government today.

But things escalated really in 2022 when the U.S.

Introduced sweeping restrictions aimed at cutting China off from accessing key technologies around semiconductors to do with artificial intelligence, for example."

The export restrictions announced in October 2022 came months after President Biden signed the Chips and Science Act into law, which was designed to boost American semiconductor investment and development.

The Biden administration has since further tightened its initial restrictions.

Commerce Department unveiled additional limits on the sale of advanced American made chips to China in an effort to further restrict Beijing's progress on supercomputing and AI.

So it continues sanctions on the export of things like these to China has certainly held back the development of China's own domestic semiconductor industry.

China's response meanwhile has been sporadic.

1 of the biggest things that happened was in May 2023, China's cyberspace regulator said chipmaker Micron poses a major security risk to China's critical infrastructure supply chain.

So, for example, Intel was trying to buy Tower semiconductor and they just sat on it and didn't give approval.

In July 2023 as well, China put some export restrictions on 2 metals, gallium and germanium.

Those are metals that are required in some instances for the manufacturing of these chips as well.

There is not a whole lot that China can do really within semiconductors.

There's these things at the margin around some of the raw materials that they can do.

But in general, China doesn't have leadership in semiconductors, So there's not really a lot that they can do.

From powering our cell phones, cars and laptops to kitchen appliances, it's hard to imagine a world without semiconductors.

But there is 1 area of use in particular that has the U.S.

AI is seen as a critical technology for the future and it's aiming to impact all sorts of industries across the board.

Really is looking to restrict China's access to some of these chips that may power these future artificial intelligence applications.

Clearly there are a lot of potential implications on military end use and that sort of thing that we want to try to control access to.

Has said is that this is about national security.

Wants to make sure that some of this technology doesn't end up in Chinese military applications.

For the US this matters because its military invests more than any other on trying to maintain a technological edge.

And in particular, as China builds more ships, more planes, fields, more missiles in the region, the U.S.

Technological edge is more important than ever.

Ultimately, China has a civil military fusion system that blurs the line between the private and the public sector,

which is essentially fancy talk for buying our sophisticated chips, which is supposedly for commercial purposes and putting them into military equipment to advance their military.

If you buy the thesis, there's a strong relationship between chip making and defense capabilities that rely on semiconductors, sensors, communications, computing, then you can understand why the US government was not excited about the previous status quo in which US firms were actively supporting the upgrading of China's microelectronics capabilities.

In terms of where the financial impact on US companies has been, the biggest impact has actually been on the equipment companies.

For example, its manufacturers in China need equipment that comes from Europe and the U.S.

And it was several billion dollars of revenue impact that companies like Applied Materials and LAM Research and those kinds of guys did see because of this.

Meanwhile, NVIDIA, makers of the world's highest performance AI chips, was initially able to work around U.S.

Export restrictions last year by producing slightly less advanced chips just below the performance threshold.

These export controls have very specific technology thresholds around things like computing power and memory bandwidth and that sort of thing, that if you exceed those thresholds, the part is not legal.

NVIDIA was able to design new parts that came in sort of just below the thresholds and so they were legal to sell.

In response, the new rules announced by the Biden administration in October 2023, were aimed in part at closing that loophole.

They basically control virtually every data center GPU that Nvidia is selling into the China market today, as well as offerings from folks like AMD and Intel basically limits everything that NVIDIA is selling right now.

In a regulatory filing following the announcement, NVIDIA said while it didn't anticipate the new restrictions to have a quote near term meaningful impact on its financial results, it may affect product development in a timely manner and require the company to relocate certain operations.

The China restrictions for Nvidia aren't going to affect them in the near term because there's supply constraints.

There's plenty of customers want what they have.

Over the long term, look, I think you have to consider China is potentially impaired.

Chip giant Nvidia may be forced to cancel billions of dollars in chip orders met for China next year because of new US export controls.

The market over the long term will likely be smaller for them if they can't manage to sell stuff into China.

Some US chip makers have warned additional controls may not only accelerate China's path to become a self-sufficient chip industry, but also pave the way for a global market dominated by Chinese made chips.

There's no doubt that this trade war and tech war has really boosted China's ambitions to boost its domestic semiconductor industry.

And you've seen stepped up efforts in that area.

Companies face is at what point does China find a way to design them out to replace them with domestic competitors?

Perhaps a preview of that came in late August 2023 when Chinese tech giant Huawei released the Mate 60 Pro, a new smartphone containing an advanced chip made by China's largest chip maker, semiconductor manufacturing international corporation, or SMIC for short.

So some people have looked at that that Huawei effort to make 7 nanometer chips for smartphones and they're holding that up as an example that the sanctions that the export controls have failed.

Trade blacklist called the Entity List, which restricts them from buying American technology.

This has really raised some eyebrows, I think, in Washington about how this was possible.

And I think the other bigger question is, while this has been achieved, how viable is this on a large scale?

While Huawei's latest 5G phones are equipped with 7 nanometer chips.

This year's Apple iPhone 15 pros, by comparison, are powered by a much more advanced 3 nanometer chip from Taiwan's semiconductor manufacturing company, widely regarded as the most advanced chip maker in the world.

A reduction in nanometer size can typically yield more powerful and efficient chips.

Controls have been effective at slowing down the pace of China's technological development.

I think it's evidence that they're succeeding because look what they're being relegated to.

You would never do that if you didn't have to, because those parts will not be competitive on a global scale.

What Huawei's breakthrough chip shows is that export controls will slow China, but it won't permanently stop China from making advances.

And that's okay, because ultimately, artificial intelligence is a race between the US and China.

Things are not going back to the way they used to be.

I think it's clear that both the US and China battling for technology supremacy with some of these key technologies like AI and semiconductors at the forefront of that.

The leadership in Washington and Beijing both understand that AI is the single most consequential breakthrough paradigm shifting technology in military affairs in 80 years.

And China views AI as essential to leapfrogging, to use their term, US military capabilities.

Because AI is seen as such a groundbreaking technology and 1 that could impact different industries across the board, I think this is an area where you may see further sanctions potentially in place, further export restrictions come in.

So companies have come to terms, I think, with that fact and are increasingly trying to position themselves in a very complex balancing act where they can serve all the customers they're legally allowed to serve, but also are cognizant of the fact that the geopolitical situation could well get even more complex.

We cannot allow China to have our most sophisticated semiconductor chips for use in the Chinese military.

I do think this is gonna be a long-term competition.

And when you listen to policymakers in Beijing or in Washington, that's certainly how they conceptualize the competition and their strategies in it.

Above all, when we look at this space, we need to understand that a world in which the Chinese Communist Party dominates critical technologies, particularly artificial intelligence, is a very dark and dystopian world.

And it's 1 that we don't want to live in.

Of course, we want American companies to lead in innovation, but national security comes first.

China, meanwhile, will likely continue efforts into strengthening its own semiconductor industry while simultaneously boosting the country's advancements in A.I.

There could be some impact going forward if the restrictions and the tech war continues to ramp up between China and the US.

And effectively, China becomes quite a closed market to a number of semiconductor firms.

It basically means that in areas of advanced computing that have significant spillover effects on the development of artificial intelligence and things like large language models, which have potent military applications, we are going to see a bifurcation in into a Chinese led technology world and American led technology world.

And so in an industry with a technology races forward so rapidly, The key question is who can run fastest in this race.

For now, as the tech war between the U.S.

And China continues to ramp up, companies caught in the middle will have to navigate uncharted territory and establish a new way of doing business.

Governments have shown a willingness and an ability to force tech firms to change their business models when they conflict with the security priorities of those governments.

So while I agree we have a lead in this space, It's very narrow and it's something we need to actually increase.

We don't have the luxury of pausing or stopping.

We need to stay ahead of them and we need to deny them this technology that they need to advance their military.

forces businesses to deal with a new reality where geopolitics is at the forefront and they have to make decisions based on that.

At the end of the day, if China's military gets what they want at the pace that they want it, that's bad for every American company.


Speaker 0: Smartphones, cars, toasters, and fighter jets. Can you guess what all of these have in common? They're all powered by advanced semiconductors, also known as microchips or chips for short. They're often regarded as the brains powering modern technologies.

Speaker 1: Microchips or semiconductors are incredibly important technologies. They are in things from refrigerators all the way to cars and the smartphones we use on a daily basis.

Speaker 2: The entire technology industry, semiconductors is the fundament of all of that. There's no tech industry without semiconductors.

Speaker 0: A $574 billion industry on pace to cross the trillion dollar mark by the end of the decade now caught in the crosshairs between 2 of the most powerful nations in the world.

Speaker 3: U.S. Trade restrictions continuing to make an impact on semiconductor companies such as NVIDIA.

Speaker 4: NVIDIA's CFO warning that China sales will drop significantly in the fourth quarter.

Speaker 3: The Biden administration is trying to cap China's access to advanced AI chips. But that said, are these curbs too little too late?

Speaker 1: They're getting increasingly sophisticated and are going to be needed and required to power and underpin some of the artificial intelligence applications that we know about going forward.

Speaker 0: So just how did semiconductors with transistors on the most advanced chips now measuring the size of a single DNA strand become the centerpiece of a technological tug of war between the United States and China. And what are the potential implications for companies caught in the middle of it all?

Speaker 5: You want to understand the chip war over the last decade, China is the player that made the first move by very heavily subsidizing its industry and trying to achieve independence.

Speaker 0: Semiconductors became a central area of competition between the United States and China during the last decade, when China's desire to become self-reliant in the sector changed the competition from 1 between companies to a rivalry between 2 of the world's largest economies.

Speaker 5: 2014 was a key inflection point when the Chinese government released a number of new policy documents targeting semiconductors as what they call a core technology. And Xi Jinping, the Chinese leader, has given a number of speeches starting in that year, highlighting chips as central to China's efforts to become self-sufficient in technology.

Speaker 1: China's semiconductor industry is quite behind other major tech powers like the US, Japan, South Korea and Taiwan. It relies heavily on foreign technology to boost its own domestic semiconductor industry as well.

Speaker 5: And so China looks at the chip industry and sees extraordinary vulnerabilities because it has to import high-end chips for its PCs, for its smartphones, for AI training from countries that are competitors.

Speaker 0: Since then, China has set up a series of vast subsidy funds from the government and state linked private equity firms, measuring in the hundreds of billions of dollars, all with the goal of boosting the Chinese chip industry.

Speaker 5: That's been the dominant strategy of China over the last decade. Keep spending huge sums each year trying to build up China's manufacturing capacity and the level of technology. And that's primarily the focus of Chinese government today.

Speaker 1: But things escalated really in 2022 when the U.S. Introduced sweeping restrictions aimed at cutting China off from accessing key technologies around semiconductors to do with artificial intelligence, for example."

Speaker 0: The export restrictions announced in October 2022 came months after President Biden signed the Chips and Science Act into law, which was designed to boost American semiconductor investment and development. The Biden administration has since further tightened its initial restrictions. In October, the U.S. Commerce Department unveiled additional limits on the sale of advanced American made chips to China in an effort to further restrict Beijing's progress on supercomputing and AI.

Speaker 1: So it continues sanctions on the export of things like these to China has certainly held back the development of China's own domestic semiconductor industry.

Speaker 0: China's response meanwhile has been sporadic.

Speaker 1: 1 of the biggest things that happened was in May 2023, China's cyberspace regulator said chipmaker Micron poses a major security risk to China's critical infrastructure supply chain.

Speaker 2: They've done things like slow walk M&A. So, for example, Intel was trying to buy Tower semiconductor and they just sat on it and didn't give approval.

Speaker 1: In July 2023 as well, China put some export restrictions on 2 metals, gallium and germanium. Those are metals that are required in some instances for the manufacturing of these chips as well.

Speaker 2: There is not a whole lot that China can do really within semiconductors. There's these things at the margin around some of the raw materials that they can do. But in general, China doesn't have leadership in semiconductors, So there's not really a lot that they can do.

Speaker 0: From powering our cell phones, cars and laptops to kitchen appliances, it's hard to imagine a world without semiconductors. But there is 1 area of use in particular that has the U.S. Concerned. Artificial intelligence.

Speaker 1: AI is seen as a critical technology for the future and it's aiming to impact all sorts of industries across the board. And the U.S. Really is looking to restrict China's access to some of these chips that may power these future artificial intelligence applications.

Speaker 2: Clearly there are a lot of potential implications on military end use and that sort of thing that we want to try to control access to.

Speaker 1: The other part here the U.S. Has said is that this is about national security. The U.S. Wants to make sure that some of this technology doesn't end up in Chinese military applications.

Speaker 5: For the US this matters because its military invests more than any other on trying to maintain a technological edge. And in particular, as China builds more ships, more planes, fields, more missiles in the region, the U.S. Technological edge is more important than ever.

Speaker 6: Ultimately, China has a civil military fusion system that blurs the line between the private and the public sector,

Speaker 7: which is essentially fancy talk for buying our sophisticated chips, which is supposedly for commercial purposes and putting them into military equipment to advance their military.

Speaker 5: If you buy the thesis, there's a strong relationship between chip making and defense capabilities that rely on semiconductors, sensors, communications, computing, then you can understand why the US government was not excited about the previous status quo in which US firms were actively supporting the upgrading of China's microelectronics capabilities.

Speaker 2: In terms of where the financial impact on US companies has been, the biggest impact has actually been on the equipment companies.

Speaker 1: For example, its manufacturers in China need equipment that comes from Europe and the U.S. It's tech companies need U.S. Design tools to design their chips.

Speaker 2: And it was several billion dollars of revenue impact that companies like Applied Materials and LAM Research and those kinds of guys did see because of this.

Speaker 0: Meanwhile, NVIDIA, makers of the world's highest performance AI chips, was initially able to work around U.S. Export restrictions last year by producing slightly less advanced chips just below the performance threshold.

Speaker 2: These export controls have very specific technology thresholds around things like computing power and memory bandwidth and that sort of thing, that if you exceed those thresholds, the part is not legal. NVIDIA was able to design new parts that came in sort of just below the thresholds and so they were legal to sell.

Speaker 0: In response, the new rules announced by the Biden administration in October 2023, were aimed in part at closing that loophole.

Speaker 2: They basically control virtually every data center GPU that Nvidia is selling into the China market today, as well as offerings from folks like AMD and Intel basically limits everything that NVIDIA is selling right now.

Speaker 0: In a regulatory filing following the announcement, NVIDIA said while it didn't anticipate the new restrictions to have a quote near term meaningful impact on its financial results, it may affect product development in a timely manner and require the company to relocate certain operations.

Speaker 8: The China restrictions for Nvidia aren't going to affect them in the near term because there's supply constraints. There's plenty of customers want what they have.

Speaker 2: Over the long term, look, I think you have to consider China is potentially impaired.

Speaker 4: Chip giant Nvidia may be forced to cancel billions of dollars in chip orders met for China next year because of new US export controls.

Speaker 2: The market over the long term will likely be smaller for them if they can't manage to sell stuff into China.

Speaker 0: Some US chip makers have warned additional controls may not only accelerate China's path to become a self-sufficient chip industry, but also pave the way for a global market dominated by Chinese made chips.

Speaker 1: There's no doubt that this trade war and tech war has really boosted China's ambitions to boost its domestic semiconductor industry. And you've seen stepped up efforts in that area.

Speaker 5: The real challenge that U.S. Companies face is at what point does China find a way to design them out to replace them with domestic competitors?

Speaker 0: Perhaps a preview of that came in late August 2023 when Chinese tech giant Huawei released the Mate 60 Pro, a new smartphone containing an advanced chip made by China's largest chip maker, semiconductor manufacturing international corporation, or SMIC for short.

Speaker 2: So some people have looked at that that Huawei effort to make 7 nanometer chips for smartphones and they're holding that up as an example that the sanctions that the export controls have failed.

Speaker 0: Both Huawei and SMIC are on a U.S. Trade blacklist called the Entity List, which restricts them from buying American technology.

Speaker 1: This has really raised some eyebrows, I think, in Washington about how this was possible. And I think the other bigger question is, while this has been achieved, how viable is this on a large scale?

Speaker 0: While Huawei's latest 5G phones are equipped with 7 nanometer chips. This year's Apple iPhone 15 pros, by comparison, are powered by a much more advanced 3 nanometer chip from Taiwan's semiconductor manufacturing company, widely regarded as the most advanced chip maker in the world. A reduction in nanometer size can typically yield more powerful and efficient chips. This has led some to believe that U.S. Controls have been effective at slowing down the pace of China's technological development.

Speaker 2: I think it's evidence that they're succeeding because look what they're being relegated to. You would never do that if you didn't have to, because those parts will not be competitive on a global scale.

Speaker 6: What Huawei's breakthrough chip shows is that export controls will slow China, but it won't permanently stop China from making advances. And that's okay, because ultimately, artificial intelligence is a race between the US and China.

Speaker 1: Things are not going back to the way they used to be. I think it's clear that both the US and China battling for technology supremacy with some of these key technologies like AI and semiconductors at the forefront of that.

Speaker 6: The leadership in Washington and Beijing both understand that AI is the single most consequential breakthrough paradigm shifting technology in military affairs in 80 years. And China views AI as essential to leapfrogging, to use their term, US military capabilities.

Speaker 1: Because AI is seen as such a groundbreaking technology and 1 that could impact different industries across the board, I think this is an area where you may see further sanctions potentially in place, further export restrictions come in.

Speaker 5: So companies have come to terms, I think, with that fact and are increasingly trying to position themselves in a very complex balancing act where they can serve all the customers they're legally allowed to serve, but also are cognizant of the fact that the geopolitical situation could well get even more complex.

Speaker 7: We cannot allow China to have our most sophisticated semiconductor chips for use in the Chinese military. That's where we've drawn the cut lines.

Speaker 5: I do think this is gonna be a long-term competition. And when you listen to policymakers in Beijing or in Washington, that's certainly how they conceptualize the competition and their strategies in it.

Speaker 9: Above all, when we look at this space, we need to understand that a world in which the Chinese Communist Party dominates critical technologies, particularly artificial intelligence, is a very dark and dystopian world. And it's 1 that we don't want to live in.

Speaker 7: Of course, we want American companies to lead in innovation, but national security comes first.

Speaker 0: China, meanwhile, will likely continue efforts into strengthening its own semiconductor industry while simultaneously boosting the country's advancements in A.I.

Speaker 1: There could be some impact going forward if the restrictions and the tech war continues to ramp up between China and the US. And effectively, China becomes quite a closed market to a number of semiconductor firms.

Speaker 6: It basically means that in areas of advanced computing that have significant spillover effects on the development of artificial intelligence and things like large language models, which have potent military applications, we are going to see a bifurcation in into a Chinese led technology world and American led technology world.

Speaker 5: And so in an industry with a technology races forward so rapidly, The key question is who can run fastest in this race.

Speaker 0: For now, as the tech war between the U.S. And China continues to ramp up, companies caught in the middle will have to navigate uncharted territory and establish a new way of doing business.

Speaker 5: Governments have shown a willingness and an ability to force tech firms to change their business models when they conflict with the security priorities of those governments.

Speaker 9: So while I agree we have a lead in this space, It's very narrow and it's something we need to actually increase. We don't have the luxury of pausing or stopping.

Speaker 7: We are ahead of them. We need to stay ahead of them and we need to deny them this technology that they need to advance their military. It

Speaker 1: forces businesses to deal with a new reality where geopolitics is at the forefront and they have to make decisions based on that.

Speaker 7: At the end of the day, if China's military gets what they want at the pace that they want it, that's bad for every American company.

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How The Escalating U.S.-China Tech War Could Hurt American Companies