The US has taken a lot of measures, each non-literal and multilateral, to cease the switch of superior chip know-how to China.

The US has banned firms from exporting chips to firms like Huawei. Recipients of presidency funding underneath the Chip and Science Legislation are prohibited from increasing the manufacturing of superior chips in China for at the very least ten years. Firms reminiscent of Nvidia are reportedly unable to ship chips used for AI growth to China. It has blocked Chinese language know-how funding within the US and is reportedly contemplating imposing extra controls on different Chinese language chip makers reminiscent of Semiconductor Manufacturing Worldwide Company.

The US believes its economic system and nationwide safety are in danger if superior chips fall into the arms of the Chinese language navy and its protection business. However the perception in export controls rests on two assumptions: that these measures will forestall focused organizations from acquiring these applied sciences, and that the associated fee the US can pay might be acceptable.

None of those assumptions may be true. Conversely, export controls could also be extra expensive than the US expects, and will not really forestall China and different rivals from getting superior chips.

In concept, the US might use bottlenecks in immediately’s chip provide chain, such because the much-discussed monopoly on ultraviolet (EUV) lithography tools from the Dutch firm ASML, to stop China from acquiring essential chip know-how.

However these applied sciences have alternate options. New packaging strategies can present the identical variety of transistors as fabricated with EUV, albeit at a better value. Broadly accessible applied sciences reminiscent of deep ultraviolet lithography (DUV) also can present the identical efficiency as cutting-edge applied sciences, however once more at a better value. (No marvel the US is now making an attempt to cease ASML from promoting even DUV tools to China.)

Greater prices will jeopardize the competitiveness of chips for shopper units, as evidenced by how U.S. sanctions practically bankrupt ZTE and put a brake on Huawei. However value is not going to cease these dearer chips from getting used for navy and different strategic functions. The rising use of synthetic intelligence — the place China already has world-class strengths — in chip manufacturing and the expertise gained might additionally scale back the price of alternate options, making export controls much less efficient over time.

Smaller nations or nations with giant know-how exports might also be cautious of implementing export controls for a very long time. China is a serious market – it imports greater than $375 billion value of chips yearly – and has sufficient financial and navy energy to make use of to combat different nations.

A stronger China would make it tougher for the US to create a multilateral management regime, particularly since there are a number of different suppliers for many elements within the semiconductor provide chain. If one element is blocked, China will merely transfer to a different provider.

China also can simply discover ways to make superior chips domestically. China has the biggest variety of STEM PhDs on this planet. The corporate can also be hiring overseas engineers and managers with superior chip manufacturing expertise: 10% of Taiwanese chip engineers have moved to China. The nation has additionally made many strategic investments, mergers and acquisitions within the manufacturing of superior chips.

A affected person China could ultimately develop semiconductor know-how by itself. If something, export controls might bolster Beijing’s resolve to construct cutting-edge chips by itself, regardless of the associated fee. That sort of considering has labored for China in nuclear and area know-how, synthetic intelligence, quantum computing, superior weapons, and hypersonics—and it might work once more with semiconductors. All that export controls can do is decelerate China’s progress in the direction of making its personal cutting-edge chips.

Whether or not export controls are designed to decelerate China’s semiconductor business or strip its navy and safety forces of wanted chips, the US can pay a heavy value for export controls.

Lack of entry to the Chinese language market will scale back the earnings of US semiconductor firms. This may scale back funding in analysis and growth, which might threaten these firms’ market management or, within the worst case, their survival. The lack of such a big market might even set off a brand new world chip scarcity as firms reduce on funding., threatens each the US and the worldwide economic system.

Export controls might additionally lead China to retaliate in opposition to US semiconductor firms, particularly these with factories and design facilities in China, which might additional jeopardize their competitiveness. Retaliation might even lengthen to US non-semiconductor firms doing enterprise in or with China.

Export controls could even deter funding within the US for concern of restrictions. Firms could even select to offshore from the US to keep away from some export restrictions, particularly if the CHIPS Act ends, which might enhance the danger to the economic system and nationwide safety. Even non-Chinese language firms and nations could not use American know-how or elements, additional weakening the US semiconductor business.

There are additionally geopolitical prices. Export controls might push China nearer to nations like Russia and Iran, probably inflicting undesirable geopolitical penalties, and even pressure Beijing to think about open battle with Taiwan to safe chip shipments.

So what can the US do as an alternative? Innovation would be the key to America’s continued management. The hole between American and non-American know-how has turn out to be the smallest ever. In 1960, the US share of world R&D was 69%. Now about 30%.

You possibly can’t win an essential race hoping to knock your opponent down, particularly if it comes at a major value. A a lot better technique is to run sooner.

Rakesh Kumar is a professor within the Division of Electrical and Pc Engineering on the College of Illinois and the writer of the e-book Reluctant technophiles: India’s complicated relationship with know-how.

The opinions expressed in Fortune.com feedback are these of their respective authors and don’t characterize the views or beliefs of Fortune.

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