By: Muhammad Mahad Ali
Technology is the application of scientific knowledge in human life to change and manipulate the human environment. Technology encompasses a wide spectrum from AI to advance microchip technology. Emerging technologies are changing almost every aspect of our lives.
Contemporarily, the economic growth, military strength and national security of a state relies on technology. A state with advanced technology influences the other states. The US-China rivalry had led to technological sanctions, which started in 2018 and 2019. The USA put sanctions on Chinese companies and Chinese 5G technology. Both are competing in many fields such as artificial intelligence, and emerging technologies. The USA has produced ChatGpt while China has introduced Deepseek. Chip war is yet another aspect of the rivalry between the USA and China; the US imports China’s semiconductor chips; however, due to new tariff tension, the USA is looking for other countries.
The 21st century has witnessed a technological war between the USA and China, which is shaping the global trade policies. Both countries intend to dominate each other in technology supremacy. Many scholars argue that tech supremacy is defined as the strategic dominance of a nation or entity in emerging technologies that provide economic, military, and geopolitical influence over competitors. Its actions influence global trade agreements, industrial policies, and global supply chains. The USA is imposing sanctions on Chinese companies in order to retain its technological supremacy. Recently, the USA banned Huawei and ZTE companies due to 5G technology. The USA claims that Chinese 5G will compromise their security. Since 2015, China has adopted the policy of made-in-China to reduce dependency on foreign technology.
The tech war between the USA and China took place when China’s indigenous moment “Made in China 2025” was initiated. In 2018, the Trump Administration imposed a 25 percent tariff on Chinese imports and in 2019 banned Huawei and ZTE as they advanced 5G technology. Semiconductors are vital to phones, aircraft and weapons, among many other things. Taiwan is the major producer of the semiconductor chips; one of its companies Taiwan Semiconductor Manufacturing Company Limited(TSMC) covers around 90% of the cutting-edge semiconductors production. Taiwan has gained supremacy in the chip industry with years of experience.
A chip war between China and USA began and both are trying to rout each other’s economy. The Chinese project in the Wuhan Hongxin Semiconductor Manufacturing Co. (HSMC) had lost billions in chip productivity. In China, the companies such as Huawei, TenCent, and SMIC drive technological development; while in the USA the state led companies and firms such as NVidia, and google are producing chips. The USA aspires to tackle Chinese technological growth by pressurizing ASML, the Dutch maker of EUV lithography machines used for advanced AI chips, to halt exports to Chinese firms. An agreement between the USA and ASML was signed that it will supply a smaller number of machines to China.
ASML breached its 2023 agreement with the USA and exported a significant number of EUV machines to China, and since then, US pressurized the company and CEO of ASML and banned it. Later, the company offered to provide insights into China’s AI development in exchange for leniency. In November 2025, the USA administration and federal agencies notified NVidia that it would not be allowed to sell its B30A chip to the Chinese companies. This chip has a capability to train enormous language models which can enhance the output of AI. The USA seeks to maintain its technological supremacy by employing various measures, including supply chain blockades, restrictions, bans, and tariffs, to hinder China’s technological advancement.
The technology war between the USA and China has long consequences for the entire world. The USA is a superpower while China is an emerging superpower in global trade. The way forward lies in practical measures: both states must enhance cooperation and mutually benefit from shared technological progress; excessive tariffs should be removed to stabilize global trade; supply chain blockades must end; and intellectual property rights should be protected with strict penalties for violations. Only through such cooperation can sustainable technological growth and economic stability be achieved.
The world has been split into two blocs, American tech bloc and China tech bloc. European States are in a state of doubt where to join either the USA’s or China’s bloc. Joining either bloc will have economic sanctions and consequences from both sides. China has been blamed by various European countries for violating the intellectual rights of advanced countries for supplying cheaper products.
The technology war between the USA and China has long consequences for the entire world. The USA is a superpower while China is an emerging superpower in global trade. The way forward lies in practical measures: both states must enhance cooperation and mutually benefit from shared technological progress; excessive tariffs should be removed to stabilize global trade; supply chain blockades must end; and intellectual property rights should be protected with strict penalties for violations. Only through such cooperation can sustainable technological growth and economic stability be achieved.
The writer is research intern at the Institute of Strategic Studies Islamabad. He can be reached at [email protected]
