US-China Technology War: An Overview

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 Microchips technology. New emerging technologies are changing almost every aspect of our lives. In contemporary times, economic growth, military strength and national security of a state relies on technology. A state with advanced technology influences other states. US-China rivalry had led to technological sanctions, which started in between 2018-2019. USA put sanctions on Chinese companies and China’s 5G technology. Both the countries 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 USA and China; the US imports China’s semi-conductor chips however, due to new tariff tension, US is looking for other countries.

The 21 centuries has witnessed technological war between USA and China, which is shaping the global trade policies. Both countries intend to dominate each other in technological 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. Their 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 due to the Chinese 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, Trump administration imposed a 25% tariff on Chinese imports and in 2019 banned Huawei and ZTE as they advanced in 5G technology. Semiconductors are a vital substance used in phones and aircrafts. Taiwan is the major producer of the semiconductors chips, one of its company Taiwan Semiconductor Manufacturing Company Limited (TSMC) covers around 90% of the cutting-edge semiconductors production. Taiwan has gained supremacy in chip industry with years of experience. A chip war between China and USA began and both are typing to rout each other’s economy. The Chinese project in the Wuhan Hongxin Semiconductor Manufacturing Co. (HSMC) had lost billions in the chip’s productivities. In China, the companies such as Huawei, TenCent, and SMIC drives technological development while in USA the state led companies and firms such as NVidia, 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 USA and ASML was signed that it will supply a smaller number of machines to China. ASML breached its 2023 agreement with USA and exported significant number of EUV machines to China, since then, US had pressurized the company and CEO to ban it. Later, the company offered to provide insights into China’s AI development in exchange for leniency. In November 2025, USA administration and federal agencies notify to 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 U.S 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 world has been spitted into two blocks, American tech block and China tech block. Owing into minds the two blocks, European States are in state of doubt where to join either America or China’s block. Joining either block will have economic sanctions and consequences from both sides. China has been blamed by various European countries on violating the intellectual rights of advanced countries for supplying cheaper products.

Technology war between US and China has noticeable long-lasting consequences for the entire world. America is a super power while China is an emerging superpower in the 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.