US bars 'advanced tech' firms from building China factories for 10 years

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The Biden administration said that US tech companies that receive federal funding will not be allowed to build in China for 10 years.

The $50 billion plan aims to build up the local chip industry.

Business groups are pushing for more government support in order to reduce dependence on China.

They are facing a global shortage of chips.

They're not allowed to use this money to invest in China, they can't develop leading-edge technologies in China for a decade.

The money will allow companies to expand their mature factories in China.

There is a long running dispute between the US and China.

In August of this year, US President Joe Biden signed a law committing $280 billion to high tech manufacturing and scientific research in order to keep up with China.

Tax breaks for companies building computer chip manufacturing plants in the US are included in the investments.

Roughly 10% of the global supply of semiconductors is produced by the US, down from 40% in 1990.

The Chinese Embassy in Washington objected to the bill because it was reminiscent of a cold war mentality.

Some US chipmakers are having a hard time selling their technology to China. The sales of artificial intelligence chips to China were stopped by US officials.

The restrictions are a "gut punch" for the company, according to Dan.

"This is really a shot across the bow at China and it's really going to fan those flames in terms of political tension in the region," Mr Ives had said.