#us-china-relations

The Canadian federal government, in partnership with key provinces, is launching a multi-billion dollar strategy to bolster its domestic semiconductor industry. This initiative aims to secure critical supply chains, foster innovation, and reduce reliance on foreign manufacturing amid escalating global trade disputes and technological competition. By establishing new advanced manufacturing facilities and research hubs, Ottawa seeks to position Canada as a reliable partner in the North American tech ecosystem, creating thousands of high-skilled jobs and ensuring long-term economic security in an increasingly digitized world.

The Biden administration has announced sweeping new tariffs on Chinese imports, including a 100% levy on electric vehicles (EVs), in a move to counter what it calls unfair trade practices. This action places significant pressure on Canada to implement similar measures to protect the highly integrated North American auto market. Without corresponding tariffs, Ottawa risks Canada becoming a dumping ground for low-cost Chinese EVs and other green technology products shut out of the US, potentially undermining billions in domestic investments aimed at building Canada's own EV supply chain.

The global battle for semiconductor supremacy is intensifying, with the U.S. and China locked in a high-stakes technological rivalry. These tiny chips, essential for everything from smartphones to military hardware, have become a focal point of geopolitical strategy. For Canada, the volatility of global supply chains has exposed critical vulnerabilities, prompting a strategic shift. Ottawa is now investing billions to bolster its domestic chip manufacturing and packaging capabilities, aiming to secure its economic future and carve out a niche in this fiercely competitive industry, navigating a complex landscape shaped by powerful allies and adversaries.

The United States, Japan, and the Netherlands have finalized a landmark agreement to restrict exports of advanced semiconductor manufacturing technology to China. The coordinated effort aims to curb Beijing's ability to produce high-end chips for military and artificial intelligence applications. This trilateral pact, targeting key equipment from companies like ASML and Tokyo Electron, marks a significant escalation in the global tech rivalry. For Canada, the move creates complex challenges and opportunities, impacting its tech sector, supply chain resilience, and its delicate foreign policy balancing act between Washington and Beijing.

The United States, Japan, and the Netherlands have formalized a landmark agreement to restrict exports of advanced semiconductor manufacturing technology to China. The pact, aimed at curbing Beijing's military modernization, targets key equipment from industry giants like ASML and Tokyo Electron. This coordinated move significantly tightens the chokehold on China's tech ambitions. For Canada, the agreement increases pressure to align with US policy, creating complex challenges for Canadian tech companies navigating the delicate balance between market access in China and strategic alliance with its North American partner and other G7 nations.