The effects of this technology dispersion are significant. For buyers, it means a world of irreconcilable requirements, with Harmony OS probably becoming a major system across the Global South where China’s effect is growing. The product’s success in China’s enormous domestic sector alone would make it a force to be reckoned with, even though non-Chinese companies face significant obstacles in their implementation.
For companies, the issue is even more serious. Companies increasingly face an impossible decision: Maintain exposure to the Chinese market and danger US restrictions, or coincide with US legislation and experience Chinese retribution.
Former National Security Advisor Jake Sullivan’s perception of a” little garden, great gate” approach has morphed into an ever-expanding backyard with significantly higher fences.
The broad US silicon controls implemented in soon 2024, followed by former President Joe Biden’s three-tier AI controls as his government’s last volley, demonstrate this ongoing mission creep.
Washington has responded by casting an even wider net over critical technologies like advanced AI chips and ultra-fast memory chips used for advanced computing as each new restriction has been undermined by Chinese workarounds and inconsistent US application.
Beijing’s evolving counter-strategy, from targeting American drone maker Skydio’s battery supply chain, a ban on the export of dual-use commodities, notably graphite, germanium, gallium and antimony to launching probes into US chip exports, signals a clear escalation in its response to Washington’s containment efforts.