China retaliates against US over its new semiconductor export restrictions
The Chinese government has voiced its displeasure over the latest US-imposed export controls on American-made semiconductors. The restrictions, which were introduced by the outgoing Biden administration, are intended to limit China's advancement in artificial intelligence (AI) and military technology. The move has further strained ties between the two global economic powerhouses, as they gear up for President-elect Donald Trump's upcoming inauguration.
US imposes restrictions on semiconductor sales to China
The US Commerce Ministry has restricted the sale of 24 types of semiconductor-manufacturing equipment and restricted several Chinese firms' access to American technology. The move is part of a strategy to prevent China from developing advanced AI tools with potential military applications, and undermine its domestic semiconductor industry. The US believes these industries threaten its national security and that of its allies.
China condemns US export controls as 'abuse'
In retaliation to the US's new export controls, China's Commerce Ministry has accused the US of "abuse" and posing "a significant threat" to global industrial and supply chain stability. The ministry stated, "The US preaches one thing while practicing another, excessively broadening the concept of national security, abusing export control measures, and engaging in unilateral bullying actions."
China bans sale of key semiconductor materials to US
In a countermove, China has banned the sale of certain materials critical for producing semiconductors and EV batteries to the US. The export ban covers antimony, gallium, germanium, and other "super hard" materials that could be used for military purposes. The move comes after China imposed similar restrictions last year amid intensifying tech rivalry with the US.
US-China tech rivalry intensifies amid military concerns
The race for tech dominance is defining US-China ties, as US increasingly fears a Chinese invasion of Taiwan. Senior US officials have accused China of stealing American-made AI software, a charge that Beijing refutes. "They're the strongest controls ever enacted by the US to degrade the PRC's ability to make the most advanced chips that they're using in their military modernization," Secretary of Commerce Gina Raimondo told reporters.
China's semiconductor industry faces new challenges
The latest US export regulations prohibit manufacturers of advanced memory chips, called high-bandwidth memory, from shipping their products to China without Commerce Department approval. These chips are essential for computations in generative AI systems. The new rules have divided the chip-making ecosystems of both countries, with US chipmakers looking to keep Chinese firms and certain components out of their direct supply chain.
