China's Chip Industry Faces a Dilemma

The CHIPS Act bans any company that receives US government funding from also investing in cutting into facilities in China. It really tightens sanctions on China specifically, trying to make sure that their place in the race towards getting their own sort of homemade chip making facility is behind America. And then relatedly via a separate regulation the US government also banned last year the transfer of cutting edge chip making tools and cutting edge AI CHIPS to China.