China bashes Biden crackdown on chip tech exports as economic rivalry intensifies
China condemned the United States’s decision to restrict the sale of semiconductor components, the latest escalation in the two countries’ rivalry in economic power and technological capabilities.
Chinese officials slammed the U.S. for its new export controls over the weekend, claiming that the new restrictions will hurt both economies. These remarks are the latest shots fired in the U.S. and China’s economic war while the Commerce Department attempts to hamper China’s access to military-grade technology.
“Out of the need to maintain its sci-tech hegemony, the U.S. abuses export control measures to maliciously block and suppress Chinese companies,” said Foreign Ministry representative Mao Ning on Saturday, according to Voice of America. “It will not only damage the legitimate rights and interests of Chinese companies but also affect American companies’ interests.”
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Mao also alleged that the U.S.’s “weaponization and politicization” of science, tech, and economic issues would not stifle China’s progress.
Analysts see the export restrictions as the latest gesture in growing economic tensions between the two countries. “This is the U.S. salvo against China’s efforts to build its domestic tech capabilities,” Dylan Patel, chief analyst at SemiAnalysis, told Bloomberg. “It’s the US firing back, making clear they will fight back.”
Congress has taken additional actions in the last year to boost U.S. research into technology in order to beat China. Most significantly, it passed the CHIPS Act in August, a bill that provides hundreds of billions of dollars to semiconductor factories in the U.S.
The restrictions on chips have already led to a significant loss for the affected Chinese companies. Shares in top Chinese chip companies, including Semiconductor Manufacturing International Corp., lost $8.6 billion in market value on Monday, according to the Financial Times.
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The Commerce Department announced on Friday that it was adding rules to restrict the sale of semiconductor components to China. It also said that it was adding 31 Chinese factories to its “unverified list,” meaning that special licenses will be required to buy from them. The decision is expected to have deleterious effects on China’s manufacturing due to its reliance on semiconductors from outside the country and its development of nuclear and hypersonic weapons.