U.S. Commerce Secretary Gina Raimondo recently emphasized that attempts to restrain China’s progress in chipmaking are a waste of time and resources. Speaking in an interview, Raimondo argued that the U.S. should prioritize domestic innovation and manufacturing investments rather than relying on bans and sanctions. She highlighted the Biden administration’s CHIPS and Science Act, which has led to more investment in chip infrastructure than the past 28 years combined, as being “more important than export controls.”
Despite this stance, The Wall Street Journal reports that President Joe Biden has continued to advocate for restrictions on China, urging allies like the Netherlands and Japan to prevent Beijing from acquiring advanced technologies, especially those containing American components.
“The only way to beat China is to stay ahead of them,” Raimondo stated. “We have to run faster and out-innovate them. That’s the way to win.” However, even with strict export controls, Chinese companies are reportedly accessing banned chips through black markets and unofficial channels. Additionally, Chinese innovation appears to be thriving, with businesses finding creative ways to circumvent American-imposed obstacles.
Raimondo made these remarks as Donald Trump prepares to return to the White House in early 2025. The CHIPS and Science Act passed with bipartisan support, and several Republican-led states have benefited from federal investments. However, Trump has criticized the program, calling it a “bad deal” in October. His spokesperson, Kush Desai, suggested an alternative strategy involving tariffs, tax cuts, deregulation, and boosting domestic energy production.
Given the uncertainty surrounding the CHIPS Act’s future, many subsidy applicants are rushing to secure funding before January 20, 2025. Meanwhile, Trump has proposed expediting permits for companies willing to invest at least $1 billion in the U.S., potentially waiving some regulations and reviews. This policy could explain SoftBank’s recent commitment to investing $100 billion in AI and other technologies in the U.S. Still, Raimondo cautioned that while deregulation may benefit competitiveness, Washington must ensure companies remain accountable, no matter their financial resources.
