Today, technology has become one of the most critical areas that determine the international balance of power. In this context, the competition between the United States (US) and China in semiconductors and artificial intelligence technologies is the focal point of cross-border strategic conflicts. The rising Chinese economy and the US’s efforts to maintain its technological leadership have caused these two powers to confront each other in these areas. Semiconductor chips and artificial intelligence algorithms are of critical importance both militarily and economically and form the basis of the strategic goals of the two countries.
Semiconductors are an essential component of the modern technology world. Playing a vital role in many sectors, from smartphones to the defense industry, these chips are at the center of the economic and geopolitical struggle between the US and China. China has been forced to follow a policy dependent on the US in this area for years and has invested billions of dollars to reduce this dependency.
The “Made in China 2025” strategy is the cornerstone of China’s technological independence goal. The US is taking various measures to maintain its leadership in this area. The “CHIPS and Science Act” enacted in 2022 supports the US’s strategy to increase domestic chip production and reduce its dependence on a China-based supply chain for years. In addition, the US has aimed to limit China’s access to this technology by working closely with Taiwan, one of the world’s largest chip manufacturers. This competition highlights not only economic but also military strategies. China’s efforts to develop its own semiconductor manufacturing capacity have been combined with state policies that support the country’s leading technology companies. However, the US is trying to slow down China’s progress with export restrictions and technology transfer restrictions.
Artificial intelligence technology is another area that could significantly affect future balances of power. China has set a national strategy to become a leader in this area and aims to increase its investments in artificial intelligence to a volume of $1 trillion by 2030. Within the framework of the “Next Generation Artificial Intelligence Development Plan,” China aims to be a leader in both military and economic use of artificial intelligence.
The US, on the other hand, supports the private sector and encourages innovation to maintain its leadership in artificial intelligence technology. Companies such as Google, Microsoft, and OpenAI have become the guiding force of the US in the field of artificial intelligence. However, China’s technology giants such as Huawei and Baidu pose serious competition to the US. China stands out in this field with its use of big data and state-supported projects. Its data collection and analysis capacity make China much more predictable and effective in artificial intelligence algorithms. From a military perspective, artificial intelligence offers a wide range of strategic areas of use, from defense systems to autonomous weapons. China and the US aim to both increase their national security and gain an advantage over their rivals on the international stage by developing these technologies.
The global dimensions of this competition cannot be ignored. For example, European Union countries are affected by this competition between the US and China and are trying to develop their own digital strategies. Initiatives such as the “European Chips Act,” which aims to reduce dependency in semiconductor production, clearly show the international effects of this race. On the other hand, technology competition also presents opportunities and threats for developing countries. While these countries remain under the technological influence of both powers, they are trying to create their own national policies.
The technology competition between the US and China could have significant impacts on both these countries and the international system. First, this competition could create regional polarization in technology supply chains. The US and China could create a more segregated technology ecosystem by forcing their allies to become technology partners. Second, competition in AI and semiconductors could trigger a major increase in innovation and R&D spending. This could accelerate the emergence of new technologies, but it could also increase economic inequalities. Third, the economic effects of this competition can be felt not only among global giants but also at the level of individuals and small businesses. In an environment where technological advancement is accelerating, the side effects of this competition could include economic fluctuations, restructuring in the labor market, and increased demand for digital skills.
On the other hand, this competition may lead to the questioning of international law and norms. Issues such as data security, ethical issues, and technology transfers may become more controversial in global politics. Therefore, both the US and China should develop strategies not only to protect their own interests but also to ensure the reshaping of international cooperation mechanisms. Managing the risks as well as the benefits of technological progress will play a critical role in this process. In particular, setting international standards for technologies with ethical dimensions, such as artificial intelligence, can encourage global cooperation.
As a result, the US-China technology competition will play a critical role in determining future geopolitical balances. The race for leadership in semiconductors and artificial intelligence technologies will shape not only the economic and military strategies of these two countries but also the technological future of the entire world. The future of the competition will be determined not only by the policies of these two powers but also by how the international community responds to this competition. The world can emerge from this struggle either with more division or with a stronger mechanism of cooperation.
