China lashes out at US' new export control on semiconductors; calls it 'violation of law'

China again lashed out at the United States on Saturday as the latter tightened export rules, making it harder for Beijing to obtain and manufacture advanced computing chips. China, in a staunch statement, called the move a clear violation of international economic and trade norms and added the step "will not only backfire on the US but also isolate the country globally". In a press conference organised to counter the US's latest move, Foreign Ministry spokeswoman Mao Ning said the Biden administration has taken the wrong step in order to maintain its hegemony and added it will suppress Chinese companies. According to her, the action will not only affect Chinese firms but also hamper America's national interests.

“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 Ning.

“It will not only damage the legitimate rights and interests of Chinese companies but also affect American companies’ interests,” she added.

Further, the spokesperson asserted that the US action on the weaponisation of science and technology will not stop China’s progress. Notably, the statement from China came as the US on Saturday updated its export controls policy wherein it added 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 a supercomputer or for semiconductor development in China. The US, on one side, claimed that the export control measures were added in accordance with the protection of national security and policy interests, China contended the claims and said the rules were made in order to hamper China's semiconductor market.

Biden sanctioned $52.7 billion to support US semiconductor producers

Recently, US President Joe Biden sanctioned $52.7 billion to support US semiconductor producers and boost their positions in competition with Beijing. At that time too, Chinese Foreign Ministry spokesman Wang Wenbin lashed at the Biden administration and stressed that the main intention of the US was to disrupt global supply and damage Chinese economic activities. He underscored that Washington is free to choose its methods of development but added it must respect the rules and principles set by the World Trade Organisation. "The US should not harm China's development and must respect World Trade Organization," he said.

US trying to grab the gap: Experts 

Notably, for decades, China has been vanquishing other nations in the semiconductor market as the major chip manufacturer. Intel, a major chip manufacturer, earns a major chunk of its entire annual revenue from industries it has established in Chinese industrial zones. Besides, cheap labour costs and China's "friendly" ties with other nations pushed its market on the track of gaining more and more profit. However, the COVID-19 pandemic and back-to-back lockdowns hindered the supply chain and hence the prices of semiconductors witnessed a record high globally. Some companies were even forced to shut down their businesses in China, citing Beijing's zero-COVID policy. Apprehending the opportunity, the US, with this law, is trying to lure companies to invest in Washington. Moreover, experts noted that the Biden administration is trying to contain the soaring inflation and unemployment in the country. 

Image: AP