Taiwan's global dominance of semiconductor chip manufacturing has been at the forefront of the US-China technology war. The focus has been on Taiwan, leaving other avenues of Chinese influence ignored. China used loopholes in US law to purchase over $38 billion in chip-making technology in the last year alone, marking a 66% rise in imports since 2022, when legislation was passed to restrict Chinese access to US chip technology.

Military modernization has become the focal point of concern. These advanced chips have been utilized to develop highly detailed surveillance systems, hypersonic weapons, and cutting-edge AI technology. US intelligence believes national security is at risk and there must be an effort to  "impede the PRC's ability to procure and produce the technologies necessary for its military modernization" to "protect our world-leading technologies and know-how so they aren't used to undermine our national security."