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China can't afford to counter the CHIPS Act -- yet, experts say

With chipmakers also stuck, TSMC and Samsung 'have to pick the U.S. side'

China has made increasing its self-sufficiency in chips a national priority, but it still has a way to go, experts say.   © Reuters

ASPEN, U.S. -- After the U.S. passed the CHIPS and Science Act this month, a $280 billion bill that aims to counter China's growing influence in technology, many wondered how the Chinese government would react. As unhappy as Beijing might be, it cannot afford to mount an effective response -- at least not yet, experts said.

"I don't think China has any good immediate policy options at this point," Xiaomeng Lu, director of think tank Eurasia Group's geo-technology practice, said at the TPI Aspen Forum here Monday. "China essentially doesn't have the technology to create those [chip] fabs."

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