US and China Continue Trade War Over Tech and Semiconductors

As of mid-April 2026, the US-China trade war has shifted from broad tariffs to a high-stakes battle for technological supremacy.

Both nations view control over the "tech stack," especially in artificial intelligence (AI) and semiconductor manufacturing, as the ultimate source of international power.

The U.S. continues to use surgical export controls and investment screening to maintain its lead.

Meanwhile, China is pursuing a "whole-of-state" strategy to achieve technological self-sufficiency by 2035.

A major point of contention is the restriction of semiconductor manufacturing equipment, which serves as a critical "chokepoint" for advanced chip production.

While U.S. lawmakers push the MATCH Act to standardize export restrictions across allied nations, this has caused some friction regarding commercial sovereignty.

Interestingly, this "innovation paradox" means that U.S. restrictions are pushing China to accelerate its own research and development.

Although these tensions are leading to global supply chain fragmentation and "selective decoupling," global markets remain resilient.