Beijing fights back against U.S. economic “bullying” after Washington restricts chipmaking exports to China

The U.S. Department of Commerce announced an export ban to China this week that covers 24 different types of microchip manufacturing equipment, prompting Beijing to issue a statement that “necessary measures” will now be taken to safeguard China’s semiconductor industry.

The Commerce Department under President Biden will no longer allow the equipment, which includes three software programs and high-bandwidth memory, to be exported from the United States to China. Furthermore, 140 Chinese entities, including toolmakers, chip fabricators, and investment firms, have also now been blacklisted by the Commerce Department because they support China’s semiconductor industry.

Chinese semiconductors, according to the agency, “can be used in the next generation of advanced weapon systems and in artificial intelligence,” which poses “a substantial risk to U.S. national security.”

“This is a typical act of economic coercion and non-market practice,” said a spokesperson for the Chinese ministry. “The U.S. says one thing and does another … abusing export control measures and implementing unilateral bullying. China firmly opposes this.”

(Related: Did you know that Chinese submarines are now able to track and even sink U.S. Navy aircraft carriers?)

Semiconductor industry “highly globalized,” so why the sudden change?

It is no secret that for decades, China has been manufacturing all sorts of hi-tech equipment for computers and other electronics. Why the sudden concern about the nation’s manufacture of these items?

The same spokesman who spoke on behalf of China and its interests added that the “semiconductor industry is highly globalized” and that everybody knows this. For the U.S. to unilaterally decide to punish China because of national security risks is a bit suspect.

“China will take necessary measures to resolutely safeguard its legitimate rights and interests,” the spokesperson added.

Biden is not the only U.S. president to go after China like this. Donald Trump during his first presidential term banned the export of certain chipmaking equipment to Semiconductor Manufacturing International Corp (SMIC), China’s largest chip manufacturer. When Biden took over, he expanded Trump’s export bans by imposing two additional rounds of export controls while investing billions into U.S. production of semiconductors.

The U.S. is also pushing for the creation of a “Chip 4 Alliance” that would include the U.S., Japan, South Korea, and Taiwan while excluding China. Beijing is upset about this, claiming that Washington is trying to “dominate the global semiconductor production and supply chain.”

Washington’s pressure campaign is not working, though, as SMIC succeeded two years ago in manufacturing microchips to the highest Western standards despite Dutch and Japanese toolmakers being forbidden by the U.S. from supplying the company with their most advanced tools.

“China knows it can’t trust the West – it has known this for the last decade,” a commenter wrote. “How is China still maintaining 5%+ GDP growth? Because they anticipate and plan for the future. There is nothing that the West can do to ‘contain’ China.”

“The Chinese market is larger than the entire OECD / West combined – any western corporation that puts their shareholders’ interests before Washington’s will make sure they can do business in China. Those that don’t will be replaced.”

Another suggested that China will probably come up with plans for counter strikes and both symmetric and asymmetric warfare against potential U.S. threats.

“The U.S. is not just bullying China: they are seeking to destroy China’s economy,” suggested another. “Capitalism is China’s enemy and seeks to make them slave laborers again. King Trump is coming! I don’t know but maybe China should resurrect Mao.”

Someone else agreed, noting that bullying “is a milder word” for what is actually happening here.

“This is economic terrorism in the truest sense.”

The global economy seems to be on the brink of some major changes. Learn more at Collapse.news.

Sources for this article include:

RT.com

NaturalNews.com