Raimondo Says Holding Back China in Chips Race Is a ‘Fool’s Errand’

By Alexander Ward and Asa Fitch of The WSJ. Excerpts:

"Commerce Secretary Gina Raimondo says efforts to restrict China’s access to technology hasn’t held back the country’s progress"

"“Trying to hold China back is a fool’s errand,” she said in an interview."

"The administration has also pushed forward with efforts to block Chinese companies from buying chips from American firms or semiconductor-making components, and urged U.S. allies, including Japan and the Netherlands, to join in the effort to restrict Beijing’s access to the technology."

"efforts to keep sensitive technologies out of Beijing’s hands remain important, but export controls amount to little more than “speed bumps” for China’s own push toward global technological dominance."

"Raimondo said she agrees there are regulations hindering American competitiveness"

"Biden administration’s rollout of the Chips Act is facing hurdles. Much of the funding intended to boost manufacturing has gone to large chip makers, including Intel, which qualified for nearly $8 billion in federal grants. But Intel has been struggling to catch up with foreign manufacturers"

"China has continued to acquire or locally build machines that make chips despite the export controls placed on many of the country’s companies, including 140 new ones earlier this month."