Part 7/11:
Interestingly, even with less advanced chips, China can offset these disadvantages through sheer volume and energy. The country’s escalation in energy generation capacity, for example, could allow it to pursue massive AI and software projects, potentially competing in AI capacity even if hardware lags temporarily behind.
The US Policy of Chip Export Controls: Mistake or Strategy?
A central question is whether the US decision to suppress exports of advanced chips to China constitutes a strategic mistake. Companies like Nvidia and AMD face revenue reductions and lower profitability from restricted sales, risking a slowdown in R&D investment at a critical juncture. The concern is whether throttling the flow of cutting-edge technology hampers American innovation and competitive edge.