From Zhong Sheng
The United States’ domineering and coercive practices in technology are continuing escalating. The US Department of Commerce recently announced an investigation into the US semiconductor supply chain and national defense industrial base in the name of reducing national security risks, to assess the extent of their reliance on Chinese chips.
It was also reported that the US has even requested Dutch chip equipment company ASML to halt exports of lithography machines to China before the relevant “bans” take effect.
While the US claims to advocate fair competition, it constantly sets obstacles for the technological development of other countries. The country always groundlessly accuses other countries of engaging in “economic coercion,” while its own economic coercion has seriously harmed the interests of even its allies.
According to reports, the investigation initiated by the Bureau of Industry and Security under the US Department of Commerce focuses on traditional chips that are not cutting-edge but still crucial to the industry.
Unlike previous US restrictions on chip sales to China, this time it will scrutinize the usage and procurement of traditional chips manufactured by China in key US industries.
To restrict China’s acquisition of advanced semiconductors, the US is implementing a strict policy that prohibits both the sales and purchases of relevant products, which severely impedes the normal trade exchanges between chip, chip equipment, materials, and component companies from various countries.
This harms the legitimate rights and interests of not only Chinese enterprises but also semiconductor companies from other countries, including the US It is typical economic and technological bullying and a serious violation of international trade rules.
The semiconductor industry is highly globalized, and the formation and development of its supply chain is the result of market forces and corporate choices. The United States, against market laws and the will of companies, is attempting to block the semiconductor supply chain with a “small yard and high fence” strategy, severely disrupting the landscape of the global semiconductor industry and seriously impacting the security and stability of international industrial and supply chains.
According to data from the US Semiconductor Industry Association, China’s semiconductor procurement in 2022 amounted to $180 billion, accounting for over 1/3 of the global total and making China the largest single market worldwide. The Chinese market is irreplaceable, and withdrawing from it is not a feasible option. This is a consensus among global semiconductor companies.
The US arbitrary act of isolating the Chinese market will not succeed and will eventually backfire. The US Semiconductor Industry Association pointed out that excessive unilateral control may harm the US semiconductor ecosystem.
Colette Kress, chief financial officer of US chip company NVIDIA believes that long-term bans on exporting AI chips to China would cause the US chip industry to permanently lose many opportunities.
The US act to suppress and contain China’s technological development at the sacrifice of harming itself is a manifestation of its deep-rooted Cold War mentality. By excluding China from critical supply chains through state behaviors and restricting China’s ascent to higher segments of the value chain, the US is indeed politicizing, instrumentalizing and weaponizing economic, trade, and technological issues to serve the hegemonic purpose of containing China’s growth.
The US disguises its “small yard and high fence” strategy as an approach to safeguarding national security, and finds various excuses to coerce other countries into implementing technological blockades against China.
This has raised widespread concerns and criticism. Some said the US efforts to weaponize its technological superiority in order to confront China seem to be putting strain on its alliances.
According to a report by The New York Times, government officials in European countries are concerned that preventing European companies from entering China, one of the world’s largest and most dynamic technology markets, could harm the interests of these enterprises. –The Daily Mail-China Daily News exchange item
