Abstract :
Abstract A trade war started between China and the United States when President Trump initiated the imposition of tariffs on China. In response, China reacted by adopting a similar approach in 2022. The competition in the semiconductor industry has the potential to significantly influence the future advancement of Artificial Intelligence. Semiconductor chips serve as the fundamental components of Artificial Intelligence hardware. This paper examines the reasons for the involvement of the United States and China in a trade war. How are the semiconductor industry and AI interconnected? What are the probable ramifications of semiconductor rivalry on the future advancement of Artificial Intelligence? The dynamics of the evolving relationship between the United States and China have been examined using the theories of International Political Economy, namely Mercantilism or Economic Realism. This study is characterized by its descriptive style and mostly relies on qualitative data. Information is being gathered from secondary sources. The study reveals that the competition in semiconductors between China and the US has had both positive and negative effects on the advancement of Artificial Intelligence. On the positive side, it has led to increased innovation in various technologies, cost reduction, and the promotion of supplier diversification. On the negative side, it has resulted in heightened geopolitical tensions between the two countries, posing threats to their national security and presenting challenges in terms of ethical considerations. The future ties between them are inherently uncertain.
Keyword :
Keywords: US-China trade war, semiconductor competition, Artificial intelligence, Sino-US relationship, new cold war