Report: China to overtake US as world's largest economy

The United States has restricted exports of critical semiconductor components and technology to China, Beijing's bid to topple Washington as the No 1 economy faces 'unprecedented' pressure, according to The Star reports.

Despite having the world's strongest industrial manufacturing capability, core technologies like China's Achilles' heel are easy prey for Washington in its strategy of tech containment.

Chinese President Xi Jinping's hopes of transforming China into the pre-eminent global digital power, while surpassing the US to become the number one economy in the world, could fall apart said sources.

Jun Zhang, an associate professor of economic geography at the University of Toronto said “China faces unprecedented pressure from the US and its international competitiveness depends to some extent on how far American containment will go”.

Meanwhile, US President Joe Biden signed into law the bipartisan Chips and Science Act of 2022 last August to bolster American semiconductor development through federal subsidies worth USD 52.7 billion.

His administration then significantly expanded its list of technological controls on China in October, with a focus on advanced semiconductor chips, chip-making software, and tech talent, reported The Star.