Taiwan Blacklists Huawei and SMIC in Major Shift Toward U.S. Tech Alignment
In the current US-China technology war, Taiwan has made a bold move by blacklisting Chinese tech giants Huawei Technologies and Semiconductor Manufacturing International Corporation (SMIC) and preventing Taiwanese companies to do one business with them unless with a license. It is an unprecedented step that will bring Taiwan closer to the historically strong United States efforts to restrict Chinese technological development, especially in artificial intelligence and semiconductors. This is the first instance of Taiwan using their export control list to penalize large Chinese companies, a move signaling a change in previous policies that favored cross-Strait business relations.
The blacklist will add further regulations to limit the transfer of advanced semiconductor technology and key components to China, which could hamper Chinese efforts in the development of AI chipmaking. Although the short-term economic effects will not be significant because of the pre-existing or the US-led controls, the move is being viewed to be highly symbolic to signal Taiwan trying to move on its own accord by following the US desired technology restrictions and security fears. This case occurs in the face of great geopolitical tensions, as China criticized the move and threatened that some consequences may follow, whereas the US and its allies demand that such a move must be strictly enforced, lest it leads to the transfer of technology to China. The action of Taiwan highlights its position in the worldwide semiconductor cycle of supply and the rivalry between the US and China over attempts to dominate technologies.
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