Enter the tug of war!After being restricted by the United States on AI investment, Saudi Arabia made

Mondo Finance Updated on 2024-01-29

Recently, Biden's restrictive measures against Chinese semiconductors have triggered a series of chain reactions, not only Huawei's ** chain has undergone great changes, but even companies such as TSMC and HiSilicon have also been deeply affected. Surprisingly, however, this restriction did not stop at China, and Middle Eastern countries also fell victim to it. The Biden team suspected that Middle Eastern countries were reselling technology to China, so it imposed restrictions on the import of high-end AI chips from Middle Eastern countries. The United States not only restricted the import of AI chips from Middle Eastern countries, but also forced Saudi Aramco's Prosperity7 to withdraw from its stake in AI algorithm company RAIN. In response to the censorship, Saudi Arabia has responded with a tough response, threatening to end the petrodollar deal and use other currencies for specific markets.

Biden**'s restrictions on Chinese technology began with questioning whether Huawei could independently manufacture 7nm chips, but Huawei's Kirin 9000S chips are fully capable of both process technology and origin. This led the United States to start fighting back, announcing restrictions on the import of AI chips from companies such as Nvidia and AMD. The U.S. restrictions are aimed at curbing China's technological development, but Saudi Arabia and other Middle Eastern countries have been implicated. This kind of restriction and confrontation driven by political interests has deepened cooperation between Middle Eastern countries and China in the field of science and technology, and has also made the so-called "ally" status of the United States exist in name only.

In the face of US restrictions, Saudi Arabia chose to "harden to the end" and openly threatened to terminate the "petrodollar agreement". As the world's largest oil exporter, Saudi Arabia has huge oil reserves and influence. Terminating the petrodollar agreement would mean the use of currencies other than the dollar in specific markets, and the impact on the United States would be significant. The response signaled Saudi Arabia's displeasure with U.S. restrictions and demonstrated its strong position in the oil sector.

The "semi-plundering" approach that the United States has been adopting has big problems with the energy issue, and once other countries no longer cooperate, their energy ** will be seriously affected. At present, the scientific and technological competition between China and the United States has led to a pattern of confrontation and restriction. The U.S. policy measures have been restrictive, but they have led to greater cooperation between Middle Eastern countries and China, and the threat of Middle Eastern countries to end the petrodollar deal has put the United States in a dilemma. This time the restrictions are likely to have more serious consequences for the United States, triggering a profound change in the energy issue.

The U.S. restrictions are not just aimed at China, but Middle Eastern countries have also fallen victim to them. Biden's restrictions on Chinese technology have sparked an international competition and confrontation. Saudi Arabia, the world's largest oil exporter, has responded strongly to U.S. restrictions. The semi-predatory approach to energy has exposed its serious problems, and this time the Sino-US technological competition has led to a pattern of confrontation and restriction. Cooperation between Middle Eastern countries and China has intensified, while the so-called "ally" status of the United States has been extinct in name only. The restrictions could have more serious consequences for the United States and trigger profound changes in the energy issue. In this tug-of-war situation, the choices and actions of all parties will determine the course of the future.

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