The Chinese government has slammed new US restrictions on the export of advanced semiconductors or equipment to make such chips to China. “China firmly opposes the US’s misuse of national security concepts and export controls to block Chinese companies,” Mao Ning, a spokeswoman for the State Department, told the press in Beijing on Friday.
Arbitrary restrictions for political reasons undermine industrial supply chains and further weaken the fragile global economy. According to unconfirmed press releases, major semiconductor manufacturers such as Taiwan Semiconductor Manufacturing Company (TSMC) or South Korea’s Samsung have been exempted from the new regulations for a year. TSMC boss CC Wei told an investor conference in Taipei on Thursday that he believes the impact on the chip maker’s operations in China will be limited. It is more about state-of-the-art chips, especially for artificial intelligence or supercomputing applications.
Regulations issued a week ago by the Washington Department of Commerce require export licenses to be applied for to supply chips built with software or systems from the US. The supply of systems with American technology is also limited. The broad restrictions also extend to US citizens who support the design or manufacture of chips subject to regulation.
‘Bad news for Chinese companies’
“The growing isolation is bad news for Chinese companies in areas such as data centers, artificial intelligence and autonomous driving, which require high-tech, high-performance chips,” wrote the renowned Chinese business magazine “Caixin”. It is another attempt by the administration of US President Joe Biden to “shut down” semiconductor supply chains to China. Since the US imposed similar restrictions on Chinese telecom giant Huawei in 2020, the country has stepped up its efforts to become self-sufficient in semiconductors.
The US government justifies its actions on grounds such as national security interests and the risk that advanced chips could be used in Chinese military equipment or surveillance systems. However, Chinese critics see a broader US strategy behind it, which seeks to slow down China’s technological progress and promote its own semiconductor industry.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
