In a strategic move, the US and EU have made what seems like a new trade agreement centered around technology. What is starting as a concern for a supply shortage for processing chips, may be the next phase in the tech wars between China and the West.
I would imagine dropping tarrifs and providing subsidies and tax breaks for the development and manufacture of data processing chips and other technology related equipment will be great for US and European based companies to be able to compete with China’s low cost and robust supply chain. Could it cause a diplomatic wedge across the Pacific? Possibly. However, China hasn’t shown much interest in compromise, especially seeing themselves as the great power of the 21st century. So, we might as well cooperate with our friends across the Atlantic.