China has gotten an unlikely ally in its bid for global chip dominance.

U.S. Companies.

Context: Semiconductors are critical components in nuclear weapons, mobile phones, automobiles, and artificial intelligence.

United States investment firms and chip manufacturers are investing in China, giving the country the advantage in dominating the global market.

Why this is important: The critical nature of semiconductors and computer chips poses a national security threat. The current reliance on China for good shows how it can slow the supply chain. This control could be disastrous in a global conflict.

Even Intel is an active investor in a Chinese company that makes chip design tools. America currently leads the way, but this boost could be just what China needs.

What they are saying:

National security adviser Jake Sullivan: the Biden administration is “looking at the impact of outbound U.S. investment flows that could circumvent the spirit of export controls or otherwise enhance the technological capacity of our competitors in ways that harm our national security.”

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