The release of the device will intensify US political pressure and will likely lead to attempts to tighten the export control regime against China.
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The scope of the plan is quite limited; the White House’s goal is to allow US investors to continue investing in less-sensitive areas of Chinese tech.
US politicians have brought up several proposals on the matter, but none are likely to materialize in the near future.
Blocked from selling advanced chips and facing stiffer competition on legacy chips, companies may lobby Washington to loosen controls.
The trip also raises the possibility of tighter US sanctions against China, which will reinforce Beijing’s view that the US is saying one thing and doing another.
Official engagement between the US and China has resumed, suggesting a thawing of bilateral relations in the near term.
China has declared its jurisdiction over TikTok and firmly opposes a forced sale, the preferred solution in the US.
A Chinese balloon flying over the US has intensified US-China tensions, paving ways for more restrictions on Chinese companies.
Any meaningful improvement in US-China relations remains challenging. Congress will continue launching policy attacks on China and more selective de-coupling will take place.
We address some major questions for China in 2023, including China’s Covid transition, economic recovery, the new head of government, and the outlook for US-China relations.