What began in 2019 as an effort by the Trump administration to cripple Huawei has lately expanded, as the US has introduced sweeping rules aimed at cutting China off from key chips and components for supercomputers. Washington has signaled that it will not hesitate to pursue extraterritorial measures if partners fail to fall in line with the new restrictions. Thus, the US-China battle over microchips has emerged as a proxy for geopolitical competition which Washington’s allies and partners might prefer to avoid but are nonetheless likely to be drawn into. For America’s Gulf allies and Israel, this development poses fresh challenges and difficult choices.
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