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US chip bans begin to take their toll on China

Friday, December 9, 2022

Significance

The short-term impacts of the growing list of US export controls in the sector are now becoming clear. They have triggered a range of responses and unintended consequences. These include a scramble to find loopholes and the emergence of a lucrative grey market for chips.

Impacts

  • Western businesses will need to look beyond China for suppliers of advanced components.
  • The automotive industry will face further semiconductor shortages and possibly safety issues.
  • Semiconductor restrictions may have impacts across the policy landscape, including on decarbonisation.

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