The Impact of High-Tech Industries on China-US Business Negotiations - Taking the ChipIndustry as an Example

Abstract

Since 2018, China and the US have held several rounds of high-level economic and trade consultations, which largely stopped in 2020. Subsequently, the US started a massive tax increase on China. However, faced with global inflation, the call was high to restart trade talks with China and eliminate tariffs on China. In June, US President Joe Biden said in a speech to the nation from Washington that the White House was reviewing the penalties imposed on China under former Donald Trump and could opt to remove them altogether. However, the US has issued a series of containment policies in the chip industry, which further casts a shadow over the resumption of bilateral talks. The high-tech industry, with chips as the representative, has been playing an essential role in the China-US business negotiations. Compared to previous studies with more focus on the one-way research about how China-US gaming influences high-tech industries, this article attempts to analyze it from a new perspective: the China-US gaming in the chip industry. Through observational studies, the article intends to make an in-depth analysis of the significant role high-tech industries have played in the China-US business negotiations and explore where the crux lies. Through a series of observational studies, this article argues that America will not loosen controls on Chinese high-tech industries, especially on the chip industry. For the US and China - the worlds first and second largest economies, the failure of business negotiations would mean no winners for either side.