By Zhong Sheng, People’s Daily
The United States' domineering and coercive practices in technology are continuing escalating.
The U.S. Department of Commerce recently announced an investigation into the semiconductor
supply chain and national defense industrial base in the name of reducing national security risks,
to assess the extent of their reliance on Chinese chips.
It was also reported that the U.S. has even requested Dutch chip equipment company ASML to
halt exports of lithography machines to China before the relevant "bans" take effect.
While the U.S. claims to advocate fair competition, it constantly sets obstacles for the
technological development of other countries. The country always groundlessly accuses other
countries of engaging in "economic coercion," while its own economic coercion has seriously
harmed the interests of even its allies.
According to reports, the investigation initiated by the Bureau of Industry and Security under the
U.S. Department of Commerce focuses on traditional chips that are not cutting-edge but still
crucial to the industry.
Unlike previous U.S. restrictions on chip sales to China, this time it will scrutinize the usage and
procurement of traditional chips manufactured by China in key U.S. industries.
To restrict China's acquisition of advanced semiconductors, the U.S. is implementing a strict
policy that prohibits both the sales and purchases of relevant products, which severely impedes the
normal trade exchanges between chip, chip equipment, materials, and component companies from
various countries.
This harms the legitimate rights and interests of not only Chinese enterprises but also
semiconductor companies from other countries, including the U.S. It is typical economic and
technological bullying and a serious violation of international trade rules.
The semiconductor industry is highly globalized, and the formation and development of its supply
chain is the result of market forces and corporate choices. The United States, against market laws
and the will of companies, is attempting to block the semiconductor supply chain with a "small
yard and high fence" strategy, severely disrupting the landscape of the global semiconductor
industry and seriously impacting the security and stability of international industrial and supply
chains.
According to data from the U.S. Semiconductor Industry Association, China's semiconductor
procurement in 2022 amounted to $180 billion, accounting for over 1/3 of the global total and
making China the largest single market worldwide. The Chinese market is irreplaceable, and
withdrawing from it is not a feasible option. This is a consensus among global semiconductor
companies.
The U.S. arbitrary act of isolating the Chinese market will not succeed and will eventually
backfire. The U.S. Semiconductor Industry Association pointed out that excessive unilateral
control may harm the U.S. semiconductor ecosystem.
Colette Kress, chief financial officer of U.S. chip company NVIDIA believes that long-term bans
on exporting AI chips to China would cause the U.S. chip industry to permanently lose many
opportunities.
The U.S. act to suppress and contain China's technological development at the sacrifice of
harming itself is a manifestation of its deep-rooted Cold War mentality. By excluding China from
critical supply chains through state behaviors and restricting China's ascent to higher segments of
the value chain, the U.S. is indeed politicizing, instrumentalizing and weaponizing economic,
trade, and technological issues to serve the hegemonic purpose of containing China's growth.
The U.S. disguises its "small yard and high fence" strategy as an approach to safeguarding
national security, and finds various excuses to coerce other countries into implementing
technological blockades against China.
This has raised widespread concerns and criticism. Some said the U.S.' efforts to weaponize its
technological superiority in order to confront China seem to be putting strain on its alliances.
According to a report by The New York Times, government officials in European countries are
concerned that preventing European companies from entering China, one of the world's largest
and most dynamic technology markets, could harm the interests of these enterprises.
Development of China is innovation-driven. Stifling China’s technological progress is nothing but
a move to contain China's high-quality development and deprive the Chinese people of their right
to development. China's development and growth, driven by its own inherent logic, will not be
stopped by external forces.
The Chinese nation has the proud tradition of standing up for itself. Suppression and containment
will only strengthen the will and boost the morale of the Chinese people.
The restrictions imposed by the U.S. on China's technological innovation will only strengthen
China's determination to achieve high-level self-reliance in science and technology.
Insiders in the semiconductor industry have openly opposed the U.S. export control measures
targeting China. They believe that the more pressure the U.S. exerts on the Chinese people, the
more likely they will double their efforts.
Win-win cooperation has been the true narrative of the 45-year diplomatic relations between
China and the U.S., and it should also be a shared goal of the two sides.
Adhering to Cold War mentality and zero-sum game thinking, and engaging in economic and
technological bullying, will not bring progress to the U.S. Only by broadening horizons and
realizing that the world is big enough for the two countries to develop themselves and prosper
together, can they better serve their respective development and prosperity through mutually
beneficial cooperation.
(Zhong Sheng is a pen name often used by People's Daily to express its views on foreign policy
and international affairs.)
