US Commerce Secretary Gina Raimondo has issued a call to arms, urging lawmakers, Silicon Valley, and US allies to prevent China from acquiring semiconductors and cutting-edge technologies that are crucial to national security. Speaking at an annual national defense forum in Simi Valley, California, Raimondo labeled Beijing as “the biggest threat we’ve ever had” and stressed that “China is not our friend.”
Raimondo’s call to action comes at a time when the United States and China are embroiled in a fierce commercial and geopolitical rivalry. In October, Raimondo unveiled a series of restrictions on the export of advanced chips to China, including those used in the development of artificial intelligence (AI), in an effort to prevent their use by Beijing for military purposes.
“I know there are CEOs of chip companies in this audience who were a little cranky with me when I did that, because you’re losing revenue. Such is life, protecting our national security matters more than short-term revenue,” Raimondo stated. She emphasized that “democracy is good for your businesses” and that “rule of law here and around the world is good for your businesses.”
The Commerce Secretary also pointed out that Nvidia, a leading semiconductor manufacturer, had developed a product that performs just below the export limit set by her department for sales to China. She acknowledged the industry’s innovation but suggested that it was “not productive.”
“Every day China wakes up trying to figure out how to do an end run around our export controls … which means every minute of every day, we have to wake up tightening those controls and being more serious about enforcement with our allies,” she added.
Raimondo stressed the need for better funding for her department, pointing out that its current budget of US$200 million is insufficient for the task at hand. “Let’s go fund this operation like it needs to be funded so we can do what we need to do to protect America,” she urged.
“America leads the world in artificial intelligence … America leads the world in advanced semiconductor design,” Raimondo asserted. “That’s because of our private sector. No way are we going to let [China] catch up.”
The world’s two largest economies remain locked in a race to control key technologies, and Raimondo’s urging for more stringent measures against China highlights the escalating tensions in the US-China relationship. As the rivalry intensifies, it remains to be seen how other stakeholders will respond to Raimondo’s call for action.