Technology crossroads: innovation in China’s telecommunications and high-performance computer sectors threatened by US stranglehold on semiconductors

Chinese companies in the computer and telecommunications sectors have been able to climb the value-added chain and become more innovative and globally competitive in part due to their ability to access global technology supply chains, many with a heavy US company presence. China’s globally active players in these sectors are reliant to some degree on US technology inputs that have now been put in jeopardy by the increasing willingness of the US government to target Chinese firms, and weaponize US company dominance of key supply chains such as software, semiconductors, and semiconductor manufacturing equipment. This paper examines prospects for Chinese companies to continue to innovate and compete globally in the computer and telecommunications sectors given the worsening geopolitical tensions centering on the technology sector.