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Chip Race: How US Desperately Tries to Hinder Chinese Semiconductor Industry
Chip Race: How US Desperately Tries to Hinder Chinese Semiconductor Industry
Sputnik International
The White House intends to tighten restrictions imposed on Chinese companies in order to hinder technological development in the semiconductor industry.
2023-10-13T19:09+0000
2023-10-13T19:09+0000
2023-11-16T15:08+0000
world
center for strategic and international studies
joe biden
us
chips
china
white house
shenzhen
chipmaker
us hegemony
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New measures to be introduced in the coming days are to tighten the rules by dealing with loopholes which allow the Chinese to get chips from third parties.According to reports, the White House overlooked access of foreign subsidiaries of Chinese companies to the very same semiconductors which could be imported into China or obtained remotely by China-based customers.Furthermore, those very chips prohibited to export to China by the earlier announced US restrictions could be easily purchased in the Huaqiangbei electronics area in the southern Chinese city of Shenzhen, a news agency reported earlier in June.The Chinese Ministry of Commerce has previously accused the US of “unreasonable suppression of Chinese companies,” calling for Washington to stop abusing export controls.The media cited Hanna Dohmen, a Research analyst at Georgetown University's Center for Security and Emerging Technology (CSET), who complained that the US has no idea about the scale of the problem. The reason for the absence of understanding apparently stems from the complexity of the issue.On the one hand, it is illegal to sell American chips to China, on the other hand, it is extremely difficult if not impossible for the US to track those shipments, the news agency said, citing analysts, emphasizing that the Chinese presently have completely legal, yet remote, access to the chips which are distributed by foreign subsidiaries.The American chips are crucial for the Chinese development of AI technology, and specifically for military unmanned combat systems, according to a report in The International Affairs Review. Therefore, the US is dead set on hindering China’s development by all means possible.In October 2022, the Biden administration imposed a set of export rules, which banned supplies of semiconductor chips made with US equipment, significantly narrowing the range of available semiconductor-dependent products on the global market. Thus, such prominent enterprises as KLA Corp (KLAC.O), Lam Research Corp (LRCX.O) and Applied Materials Inc (AMAT.O), which produce devices, were legally required to stop cooperation with Chinese factories manufacturing logic chips.The media called the decision a watershed moment in US policy towards China in terms of undermining technological cooperation that began in the 1990s. A multinational news agency claimed that the new rules would significantly hinder Chinese technological development, citing an expert at the Center for Strategic and International Studies (CSIS), who noted that the new restrictions bore strong resemblance to Cold War-era regulations.China is highly dependent on the American chips, importing around a hundred AI chips produced by such prominent US enterprises as Nvidia, Xilinx, Intel, and Microsemi in 2020, the media said, citing a CSET report published in 2022.Thus, the market will soon have to apply the new restrictions; however, it remains unclear how Washington will deal with another loophole which allows the Chinese to purchase everything using cloud providers like Amazon Web Services, the news agency stressed. The media added, citing sources, that the White house is targeting that issue as well.
https://sputnikglobe.com/20230806/us-policy-to-curb-chinese-chip-industry-could-backfire---south-korean-lawmaker-1112417681.html
https://sputnikglobe.com/20231006/us-chipmakers-warn-bidens-semiconductor-spat-with-china-could-backfire-1113973804.html
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Chip Race: How US Desperately Tries to Hinder Chinese Semiconductor Industry
19:09 GMT 13.10.2023 (Updated: 15:08 GMT 16.11.2023) The White House intends to tighten restrictions imposed on Chinese companies in order to hinder technological development in the Asian nation's semiconductor industry.
New measures to be introduced in the coming days are to tighten the rules by dealing with loopholes which allow the Chinese to get chips from
third parties.
According to reports, the White House overlooked access of foreign subsidiaries of Chinese companies to the very same semiconductors which could be imported into China or obtained remotely by China-based customers.
Furthermore, those very chips prohibited to export to China by the earlier announced
US restrictions could be easily purchased in the Huaqiangbei electronics area in the southern Chinese city of Shenzhen, a news agency reported earlier in June.
The Chinese Ministry of Commerce has previously accused the US of “unreasonable suppression of Chinese companies,” calling for Washington to
stop abusing export controls.
The media cited Hanna Dohmen, a Research analyst at Georgetown University's Center for Security and Emerging Technology (CSET), who complained that the US has no idea about the scale of the problem. The reason for the absence of understanding apparently stems from the complexity of the issue.
On the one hand, it is illegal to sell American chips to China, on the other hand, it is extremely difficult if not impossible for the US to track those shipments, the news agency said, citing analysts, emphasizing that the Chinese presently have completely legal, yet remote, access to the chips which are distributed by foreign subsidiaries.
The American chips are crucial for the
Chinese development of AI technology, and specifically for military unmanned combat systems, according to a report in The International Affairs Review. Therefore, the US is dead set on hindering China’s development by all means possible.
6 October 2023, 09:30 GMT
In October 2022, the Biden administration imposed a set of export rules, which banned supplies of semiconductor chips made with US equipment, significantly narrowing the range of available semiconductor-dependent products on the global market. Thus, such prominent enterprises as KLA Corp (KLAC.O), Lam Research Corp (LRCX.O) and Applied Materials Inc (AMAT.O), which produce devices, were legally required to stop cooperation with Chinese factories manufacturing logic chips.
The media called the decision
a watershed moment in US policy towards China in terms of undermining technological cooperation that began in the 1990s. A multinational news agency claimed that the new rules would significantly hinder Chinese technological development, citing an expert at the Center for Strategic and International Studies (CSIS), who noted that the new restrictions bore strong resemblance to Cold War-era regulations.
China is highly dependent on the
American chips, importing around a hundred AI chips produced by such prominent US enterprises as Nvidia, Xilinx, Intel, and Microsemi in 2020, the media said, citing a CSET report published in 2022.
Thus, the market will soon have to apply the new restrictions; however, it remains unclear how Washington will deal with another loophole which allows the Chinese to purchase everything using cloud providers like Amazon Web Services, the news agency stressed. The media added, citing sources, that the White house is targeting that issue as well.
