<h2 class=" eplus-wrapper" id="crosshead">Trading blows</h2>

Throughout history, the power of empires has been based on their ability to control key resources. In the ancient world, this meant controlling the flow of water. In the 16th Century, Spain became the greatest state in Europe because of its monopolyWhen one company or individual controls a service or resource, this is called a monopoly. It is often thought of as a problem because it means that there is no competition, allowing the holder of the monopoly to behave in ways that do not benefit consumers. on gold and silver from South America.¹ More recently, states like Saudi ArabiaThe second-largest country in the Arab world, with a population of nearly 35 million. , QatarA small country on the Arabian Peninsula, bordering Saudi Arabia. Like its larger neighbour, it has experienced rapid economic development but maintained strict conservative religious codes. and the UAEThe United Arab Emirates is a country in the Middle East, and the location of Dubai. have become global players thanks to their oil supplies.

That is why experts are constantly trying to predict what will be the next great resource on which superpowers will rise and fall. Historian Chris Miller thinks he has the answer: microchipsA tiny piece of material containing electronic circuits. They can hold a huge amount of information. .

Microchips are behind everything we use on a day-to-day basis: not just computers, but microwaves, dishwashers and cars.

That is why the world's superpowers want to control them. For decades, the USA has dominated microchip production.

The USA great rival, ChinaA country in East Asia, home to 1.4 billion people., has long understood the importance of microchips. It uses 50% of all microchips produced around the world.²

This has made it dependent on the USA. But now it is spending $1.4 trillion (£1.24 trillion) every year to develop its own microchip industry.

The USA is not going down without a fight. Earlier this month, the country launched a trade war on Chinese microchips, trying to crush China's production.

However, while the USA still largely controls the technology behind microchips, actual production of the chips mostly takes place in Japan, South Korea and TaiwanAn island country in east Asia. China still claims to be the legitimate owner of Taiwan, while the Taiwanese government until recently claimed to be the legitimate government of the whole of China..

All three are in China's neighbourhood. And Taiwan, the world's biggest microchip producer, is directly in the firing line.

China could therefore easily threaten the supply lines that bring microchips to the USA. And if China declares war on Taiwan, as it has threatened to do, it could also gain access to all its production facilities.

Yes: Microchips could be about to cause a world war. And if a war does reduce the supply of microchips, it will become difficult to make any of the technologies that sustain modern life. We are staring down the barrel of a historic crisis.

No: This is just another aspect of the trade war that has been raging between the USA and China for some time now. And no-one would gain from disrupting the global supply of microchips.

Or... There are important things here, but the role of microchips is overstated. China's hostility towards Taiwan and its trade war with the USA have much deeper roots.

Monopoly - When one company or individual controls a service or resource, this is called a monopoly. It is often thought of as a problem because it means that there is no competition, allowing the holder of the monopoly to behave in ways that do not benefit consumers.

Saudi Arabia - The second-largest country in the Arab world, with a population of nearly 35 million.

Qatar - A small country on the Arabian Peninsula, bordering Saudi Arabia. Like its larger neighbour, it has experienced rapid economic development but maintained strict conservative religious codes.

UAE - The United Arab Emirates is a country in the Middle East, and the location of Dubai.

Microchips - A tiny piece of material containing electronic circuits. They can hold a huge amount of information.

China - A country in East Asia, home to 1.4 billion people.

Taiwan - An island country in east Asia. China still claims to be the legitimate owner of Taiwan, while the Taiwanese government until recently claimed to be the legitimate government of the whole of China.