The White House issued an executive order at the end of the week that went unnoticed by many, but now the media is starting to actively discuss what really happened. Bloomberg says this creates a “bomb blast” effect.

President Joe Biden signed an executive order banning the use of chips manufactured outside the country. The restriction applies not only to companies in the United States, but also to other companies using American technology.

Jordan Schneider, a China and ChinaTalk tech analyst at Rhodium Group, said Biden essentially forced American professionals working in China’s chip manufacturing industry to choose between being fired and losing their citizenship. As a result, American executives and engineers working to manufacture semiconductors in China resigned en masse from Friday to Saturday, paralyzing the entire industry.

Semiconductor production in China has almost stopped. All industries dependent on microelectronics are reportedly affected, from smartphones to self-driving cars to the military and aerospace industries. The US has dealt the biggest blow to the entire Chinese tech industry.

Although US semiconductor exporters had to apply for licenses during the Trump administration, the licenses were approved within a month. Any company building advanced semiconductor solutions now faces a complete shutdown of supply, layoffs of all American personnel, and immediate operational paralysis. This is what the destruction looks like: China’s semiconductor production has been reduced to zero. Complete collapse. No chance of survival. Jordan Schneider

Analysts say that the four-year sanctions under the Donald Trump administration exceeded the one-round sanctions of the Joe Biden administration. At the same time, Chinese media allegedly feared harming the semiconductor industry and China’s national security.