At first glance, the Huawei Mate 60 seems like a regular smartphone.The device gains significance due to its microprocessor, designed and made in China.

The microprocessor is at the heart of tensions between the US and China.Huawei's breakthrough represents China's efforts to establish a self-sufficient chip industry.

The Mate 60's advanced capabilities challenge US controls on technology access.China's progress worries US officials, especially regarding chips used in military equipment.

US Secretary of Commerce's visit to Beijing aimed to ease tensions but was overshadowed.The Mate 60 competes with the iPhone, released quietly but sold out quickly online.

The Mate 60 competes with the iPhone, released quietly but sold out quickly online.US export controls aimed at keeping China 8-10 years behind but may have fallen short.

Most advanced chips traditionally come from Taiwan's TSMC, but US sanctions disrupted Huawei's access.

ASML's EUV machines are crucial for chip production; China's limited access prompts innovative solutions.

Challenges remain for China to scale production efficiently and reach sub-seven nanometer capabilities.

Cutting ties could lead to short-term degradation of capabilities but incentivize long-term self-sufficiency.

China's significant semiconductor spending poses a threat to the US's global tech dominance. China's capital and patience may enable it to achieve advanced capabilities over time.