The United States and China are the two global economic heavyweights.

On October 21, China imposed restrictions on the export of graphite used to make electric car batteries. China has retaliated to another round of US curbs on sharing semiconductor manufacturing technology and software with Beijing.

The recent decision by the United States government to grant permission for Samsung Electronics and SK Hynix, both based in South Korea, to acquire advanced manufacturing equipment for their semiconductor plants in mainland China is anticipated to pose challenges for domestic memory chip manufacturers in China, such as Yangtze Memory Technologies Co. (YMTC).

Action on unfair practices is essential to stop the auto industry suffering like steel, aluminium and solar.

The United States wants to lessen its reliance on China when it comes to electric vehicle (EV) production. A proposed $7,500 tax credit set to kick in come 2024 is held by most to be the key to increasing EV sales stateside. Yet, US law dictates the credit cannot be used to purchase cars with battery components that come from a “foreign entity of concern.” The interpretation of that phrase will likely dictate the future of the US EV rollout.

This could enable China to bridge the technological gap that the US is determined to maintain, and position China as a world leader in chip production.

Gina Raimondo, the commerce secretary, emphasized U.S. concerns over harsh treatment of foreign companies and national security issues in a meeting with top officials in Beijing.

For a decade until 2018, China sought to recruit elite foreign-trained scientists under a lavishly funded program that Washington viewed as a threat to U.S. interests and technological supremacy.

Political tensions between the US and China are contributing to lower container shipments between the world’s two largest economies, on top of an already-underway reshaping of global trade, according to a major shipping industry boss.

China has urged the World Trade Organization to scrutinise US-led technology export restrictions aimed at curbing its ability to make advanced chips, state television said on Wednesday.