US-China Tech Rivalry: The Overture to Economic Reshaping In recent global markets, the technological hegemony competition between the US and China is intensifying more than ever. Advanced technology sectors like semiconductors and artificial intelligence (AI) are emerging as core issues in political and security strategies, transcending mere industrial competition. Semiconductors, in particular, are highly dependent on global industries and are considered critical infrastructure for the future digital economy. AI technology also holds significant potential to drive substantial societal changes in areas such as autonomous driving, healthcare, and finance. The US-China competition for dominance in these advanced technologies is expected to bring about significant short-term changes in the global industrial structure and suggests the potential for a long-term reshaping of the world order itself. This rivalry is profoundly impacting major technologically advanced nations, including South Korea. The US government views semiconductors and AI as critical determinants of military and economic superiority and is continuously pursuing decoupling from China in these areas. A prime example is the 'CHIPS and Science Act' announced by the Biden administration in 2022. This legislation, amounting to approximately $52.7 billion, was enacted to encourage semiconductor manufacturing in the US and restrict Chinese companies' access to technology. In addition, strengthened sanctions continue, including prohibitions on exporting certain AI chips and restrictions on technology licenses. Global semiconductor companies are reducing or re-evaluating their investment and cooperation prospects in the Chinese market in response to US policies. For instance, US semiconductor giants NVIDIA and AMD face stringent regulations when supplying their latest semiconductor products to China. Starting in 2024, the US Department of Commerce completely banned the export of high-performance AI chips like H100 and A100 to China, a measure seen as directly limiting China's AI development capabilities. These policy changes directly impact global supply chains, requiring companies to make more complex decisions than before. Opinions are divided regarding this US approach. In an opinion column for The New York Times titled 'Cracks Beyond the Tech Barrier: The Shadow of American Protectionism on the Global Economy,' columnist Sarah Chen pointed out that while the US's protectionist tech strategy might strengthen security in the short term, it carries a significant risk of long-term side effects such as global supply chain disruption and damage to technological innovation. Chen warned, 'Excessive control in the semiconductor and AI sectors can hinder innovation and accelerate technological self-reliance among non-aligned nations, thereby weakening US influence.' She added, 'An overly hardline stance in advanced technology competition with China could stimulate technological independence among non-aligned countries and specifically impede joint research and technology transfer in AI and semiconductors.' Indeed, in response to these sanctions, China is making all-out efforts to enhance its domestic advanced technology self-sufficiency. As of 2023, China ranks among the top globally in both the number of AI research papers published and patents held, and by 2025, it surpassed the US in AI-related patent applications, recording over 70,000 annually. This demonstrates continuous efforts to strengthen global competitiveness through 'technological rise' (기술 굴기). The Future of Advanced Industries and South Korea's Choice Conversely, in an editorial titled 'Who Wins the Tech War: America Must Show Unwavering Leadership,' The Wall Street Journal's Editorial Board assessed the US's hardline stance as an appropriate response to China's military challenges. It particularly emphasized the need for the US to establish deterrents, citing China's potential to use advanced technologies, including AI, for military purposes. The editorial asserted, 'Decisive action by the US is inevitable to curb China's technological rise and military buildup,' and 'Decoupling from China in critical technology sectors is essential to protect US national security and economic superiority.' It further added, 'This will contribute to building a more stable world order in the long run' and 'can also have a positive impact on maintaining global economic stability.' Additionally, the opinion was put forth that US advanced technology policies could offer allies like South Korea, Japan, and Taiwan opportunities to explore new supply chain diversification, leading to strengthened long-term cooperation. Amidst this, South Korea is compelled to make complex choices at the heart of the US-China tech rivalry. South Korea's semiconductor industry, in particular, is considered a strategic stronghold by both the US and China. South Korea holds approximately 60% of the global memory semiconductor market sh
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