Key Points

• Economic Consequences: A cut-off of AI chip supplies to countries deemed "friends" by the US could have severe economic repercussions, particularly for countries relying heavily on these technologies. This could lead to a loss of competitiveness and revenue for these nations, potentially shifting the balance of power in favor of China.
• Global Supply Chain Vulnerabilities: The US's actions could also expose vulnerabilities in global supply chains, as other countries might be forced to rely on Chinese suppliers or develop alternative solutions. This could have far-reaching implications for industries worldwide.
• Military Implications: The impact on the AI race would depend on the specific technologies being restricted. If US "friends" are able to develop alternatives or find workarounds, the military implications might be mitigated. However, if China is left without access to cutting-edge technologies, it could gain a strategic advantage.