Over the past months, and even years, the high-profile clash between the world's two largest economies has continued to intensify. 

Of course, I’m talking about China and the US… 

In the latest development, it’s been reported that the Biden admin is considering eliminating Huawei Technologies Co. from the list of U.S. suppliers. 

This situation stems from concerns over national security due to the tightening export controls that target Huawei.

While this is hitting the news today, this is more or less a rehashing of previous developments from some Trump-era policy. 

Back in 2019, President Trump put Huawei on a list from the Department of Commerce that dubbed certain companies as national security threats. 

However, the same department would eventually agree to grant special licenses to US companies that would allow them to sell technology to Huawei as long as the transactions wouldn’t put national security at risk. 

Fast forward to today, and the Biden admin is now considering doing away with the licensing program. 

Still, there hasn’t been a concrete decision made on the matter yet.

The developments in this situation were previously reported by Bloomberg and the Financial Times.

An example of a technology deemed too risky to sell to China would be something like an advanced microchip, a piece of technology vital to Huawei’s smartphones.

This continues to push the US and China further into the chip war that I’ve mentioned before.

Since doing business in China has become synonymous with IP theft and more shady practices as of late, it makes sense why the US government would like to limit the availability of our most advanced technologies to the red nation. 

At the moment, there haven’t been any comments from Huawei but the company has said in the past that its products are not a threat to national security. 

While no official decision has been made yet, the Biden administration has suggested to some of Huawei’s US partners that now would be a good time to start reigning in sales to the company. 

Companies like Qualcomm Inc. and Intel Corp., which continue to supply Huawei with advanced chips, are among those that this suggestion was put to. 

Back Within Our Borders

Recently, the US government and private sector have taken several actions to bring semiconductor manufacturing and research back to the United States.

This has all been part of the initiative to decouple ourselves from reliance on China to manufacture and develop technologically advanced products. 

As I mentioned above, part of the reason for this is due to shady business practices that have become associated with manufacturing in China. 

And with tech like advanced semiconductors being used in everything from consumer electronics to the most bleeding-edge military equipment, rising geopolitical tensions have kicked off a major initiative to bring manufacturing back onto US soil. 

As things stand right now, it would be less than ideal for the US to have so much of its advanced technology manufactured in China in case a worst-case scenario were to materialize. 

So far, the US government has announced plans to invest billions of dollars in the domestic semiconductor industry, including funding for research and development, chip manufacturing, and infrastructure.

The government has also provided tax incentives and other financial benefits to encourage companies to build semiconductor manufacturing facilities in the country.

Additionally, there has been a renewed push to develop stronger strategic alliances with other countries and private companies to pool resources and expertise to continue developing advanced semiconductor technologies.

These actions are all aimed at strengthening the US's competitiveness in the global technology market, specifically when it comes to semiconductors, and ensuring a secure and reliable domestic supply of these critical components.