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Taiwan puts companies behind China's AI ambitions on export control list | CNN Business

Summary of CNN Article: Taiwan, China, Huawei, SMIC, and Export Controls (June 16, 2025)

The CNN article, published on June 16, 2025, delves into the escalating tensions between the United States, China, and Taiwan over semiconductor technology, focusing on the latest developments in U.S. export controls targeting Chinese tech giants Huawei and Semiconductor Manufacturing International Corporation (SMIC). The piece highlights Taiwan's critical role as a global semiconductor powerhouse and the geopolitical ramifications of these controls, which are designed to curb China's access to advanced chip technology amid growing concerns over national security and technological dominance.

The article begins by contextualizing the ongoing U.S.-China tech war, which has intensified since the late 2010s. Huawei, once a leading global telecommunications company, has been under stringent U.S. sanctions since 2019, when it was placed on the U.S. Department of Commerce’s Entity List, effectively barring American companies from supplying it with critical components and software without special licenses. SMIC, China’s largest chipmaker, has faced similar restrictions since 2020, aimed at preventing it from acquiring advanced manufacturing equipment necessary to produce cutting-edge semiconductors. The 2025 update, as reported by CNN, indicates that the Biden administration (or a successor administration) has further tightened these controls, introducing new measures to close loopholes that previously allowed some technology to reach Chinese firms through third-party countries or intermediaries.

A significant focus of the article is Taiwan’s pivotal position in this conflict. Taiwan is home to Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract chip manufacturer, which produces chips for major global tech companies, including Apple, Nvidia, and AMD. TSMC’s dominance in advanced node technology—producing chips at 3-nanometer and smaller scales—makes it a linchpin in the global supply chain. The U.S. has increasingly leaned on Taiwan to align with its export control policies, pressuring TSMC and other Taiwanese firms to restrict shipments of advanced chips and manufacturing equipment to China. According to the CNN report, the latest U.S. measures include stricter licensing requirements for Taiwanese companies exporting to Chinese entities, even for less advanced technologies, reflecting a broader strategy to choke off China’s semiconductor ambitions.

The article also explores China’s response to these tightened controls. Despite years of sanctions, Huawei and SMIC have shown resilience, with Huawei reportedly making strides in developing domestic alternatives to U.S.-sourced technology. For instance, Huawei’s recent smartphone releases, as noted in the article, incorporate chips believed to be manufactured by SMIC using older, less advanced processes (likely 7-nanometer or above), circumventing the need for cutting-edge equipment restricted by the U.S. However, these chips are still far behind the performance of those produced by TSMC or South Korea’s Samsung, underscoring China’s ongoing dependency on foreign technology for high-end applications like artificial intelligence and 5G infrastructure. The CNN piece cites experts who warn that while China is investing heavily in its domestic semiconductor industry—potentially spending billions through state-backed initiatives—it may take a decade or more to achieve parity with Western and Taiwanese capabilities.

Geopolitical tensions surrounding Taiwan are another key theme of the article. With China viewing Taiwan as part of its territory and increasing military posturing in the Taiwan Strait, the U.S. export controls are framed not only as a technological strategy but also as a means of bolstering Taiwan’s strategic importance to the West. The article quotes U.S. officials who argue that denying China access to advanced chips weakens its military capabilities, given the reliance of modern warfare on semiconductor-driven technologies such as drones, satellites, and missile systems. At the same time, the piece notes growing concerns in Taiwan about being caught in the crossfire of U.S.-China rivalry. Taiwanese officials and business leaders, as reported by CNN, express unease over the economic impact of export restrictions, given that China remains a significant market for Taiwanese goods, even as political relations deteriorate.

The article further elaborates on the global implications of these export controls. Beyond Taiwan and China, the U.S. has been rallying allies such as the Netherlands and Japan—home to critical semiconductor equipment manufacturers like ASML and Tokyo Electron—to align with its policies. The Netherlands, for instance, has already restricted the export of advanced lithography machines to China under U.S. pressure, a move that has significantly hampered SMIC’s ability to scale up production of smaller, more efficient chips. The CNN report suggests that the latest 2025 measures include coordinated actions among these allies to further limit China’s access to even mid-range semiconductor technologies, reflecting a broader Western consensus on containing China’s technological rise.

Economic ramifications are also a major focus of the piece. The tightened export controls are likely to disrupt global supply chains, already strained by the COVID-19 pandemic and subsequent geopolitical conflicts. Taiwanese companies, while compliant with U.S. policies, face potential revenue losses from reduced trade with China, prompting calls for government subsidies or alternative markets. Meanwhile, Chinese firms like Huawei may accelerate efforts to diversify supply chains away from U.S.-influenced regions, potentially deepening economic decoupling between the two superpowers. The article cites analysts who predict that such decoupling could lead to a bifurcated global tech ecosystem, with separate standards and supply chains for Western and Chinese technologies, further complicating international trade.

Public and expert opinions featured in the CNN article paint a complex picture. Some U.S. policymakers argue that the export controls are a necessary evil to protect national security and maintain technological superiority, especially as China advances in areas like artificial intelligence and quantum computing. Critics, however, warn of unintended consequences, including the risk of pushing China to become self-sufficient faster than anticipated, potentially creating a formidable competitor unbound by Western supply chains. Taiwanese perspectives, as reported, are similarly divided, with some advocating for closer alignment with the U.S. for security reasons, while others caution against alienating China, a neighbor with significant economic and military leverage.

In conclusion, the CNN article underscores the high stakes of the U.S.-China tech rivalry, with Taiwan caught at the center of a battle for semiconductor supremacy. The tightened export controls on Huawei and SMIC, while aimed at curbing China’s technological ambitions, carry far-reaching implications for global trade, security, and innovation. As of June 2025, the trajectory of this conflict remains uncertain, with potential outcomes ranging from a prolonged stalemate to an accelerated push for technological independence by China. The piece ends on a sobering note, suggesting that the semiconductor industry—once a symbol of global cooperation—has become a frontline in a new kind of cold war, with Taiwan’s chips as both a prize and a potential flashpoint.

Read the Full CNN Article at:
[ https://www.cnn.com/2025/06/16/tech/taiwan-china-huawei-smic-export-control-intl-hnk ]