The U.S. government announced a new round of export restrictions to China last week, and it is expected that about 200 Chinese chip companies will be directly affected.
This move marks a further escalation of U.S. restrictions on China’s technological development, especially the semiconductor industry.
The Commerce Department plans to unveil new rules before Thanksgiving, which could include restrictions on the export of chip-making equipment to China and export controls on artificial intelligence-related technology, according to an email sent by the U.S. Chamber of Commerce last week. In addition, the United States plans to restrict the export of high-bandwidth memory chips (HBMs) to China as part of a broader AI package to China.
This new round of export restrictions is a continuation of the comprehensive restrictions imposed by the United States on China’s semiconductor industry in recent years. In October 2022, the United States began to impose comprehensive restrictions on China’s semiconductor industry, prohibiting the export of equipment using American equipment and advanced chips to China. As of October 31, 2024, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) maintained a total of 3,870 entities on the Restrictive List for Export Control, of which 1,012 are from China, accounting for 26.1% of the total.
In the face of continued US repression, China has not passively accepted it. In recent years, China has stepped up its efforts in independent innovation and R&D in the semiconductor industry, striving to build an independent and controllable semiconductor industry chain to cope with potential external risks. At the same time, China has also taken advantage of its resource advantages to retaliate, such as imposing export controls on antimony and other items, which has had a significant impact on the United States. In addition, China is also actively promoting international cooperation and strengthening cooperation and exchanges with other countries in the field of semiconductors. Through the introduction of foreign investment, technical cooperation and other ways, we will continue to improve the level and competitiveness of our semiconductor industry.
As U.S. export controls become more frequent, so does the effect of their own repercussions. A few days ago, the Federal Reserve Bank of New York, a subsidiary of the Federal Reserve Board of the United States, released a report titled “Geopolitical Risk and Decoupling: Evidence of U.S. Export Controls”, pointing out that export control measures originally designed to “protect” U.S. companies have instead caused supply chain disruptions, rising operating costs and reduced market competitiveness to U.S. companies. In addition, the report assesses the actual impact of U.S. export controls on U.S. companies in terms of revenue, profitability and financing, including the total market value of U.S. companies that have “evaporated” by $130 billion. Chinese companies, on the other hand, have sought to offset the negative impact and reduce their reliance on U.S. technology by finding new suppliers, increasing innovation and other purchases.
Chinese Foreign Ministry spokesperson Mao Ning said at a regular press conference on the 25th that China has always firmly opposed the US side’s generalization of the concept of national security, abuse of export control measures, and malicious blockade and suppression of China. This kind of behavior seriously violates the laws of the market economy and the principle of fair competition, undermines the international economic and trade order, disrupts the stability of the global production and supply chain, and ultimately harms the interests of all countries. China will take resolute measures to firmly safeguard the legitimate and lawful rights and interests of Chinese enterprises.
In today’s global economic integration, the United States’ export restrictions on China’s semiconductor industry have not only affected China, but also impacted the global supply chain. Such unilateralist behavior not only harms the interests of Chinese and American companies, but also poses a threat to the stability and development of the global economy. In this context, China is actively responding to external challenges by strengthening independent innovation and international cooperation to protect national interests and the stability of global supply chains.
