China retaliates against recent U.S. export restrictions on chips

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Last Updated on October 9, 2022 by Bitfinsider

China on Saturday (Oct. 8) criticized the United States’ latest plan to tighten export regulations, which would make it more difficult for China to source and produce advanced computing chips, as a violation of international economic and trade laws that will “isolate and backfire” on the US.

Mao Ning, a spokesperson for the Chinese Foreign Ministry, stated, “In order to retain its technological monopoly, the United States abuses export control procedures to purposefully hinder and crush Chinese firms.”

She stated, “It will not only harm the legitimate rights and interests of Chinese enterprises, but also the interests of American companies.”

Mao also stated that the “weaponization and politicization” of science and technology as well as economic and trade concerns by the United States will not impede China’s development.

She was speaking after the US updated its export controls on Friday, which included the addition of certain advanced, high-performance computing chips and semiconductor manufacturing equipment to its list, as well as new license requirements for items that would be used in the development of supercomputers or semiconductors in China.

The United States stated that the addition of export controls was part of its continuous efforts to safeguard national security and foreign policy interests.

In recent years, US-China relations have deteriorated due to technological and security concerns. The United States has imposed a slew of policies and limitations aimed to prevent China from acquiring chip technology, while China has allocated billions for investment in semiconductor production.

The tensions have affected U.S. and international semiconductor companies that export chips or produce chips in China.

The stock price of semiconductor companies such as Nvidia and AMD has decreased by forty percent over the past year.

The Semiconductor Industry Association, which represents the US semiconductor industry, said in a statement, “We understand the goal of ensuring national security and urge the US government to implement the rules in a targeted manner—and in collaboration with international partners—to help level the playing field and mitigate unintended harm to US innovation.”

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