China hits back at intensified US chip export controls
Published: Oct 18, 2023 09:54 PM
China's Ministry of Commerce

China's Ministry of Commerce

China's Ministry of Commerce on Wednesday blasted the US' tightened chip export restrictions on China, vowing to take necessary measures to maintain China's legitimate rights and interests.

The Chinese side has noticed that the US side announced final rules on chip export controls to China, the ministry said in a statement on its website. It criticized the US side for abusing the national security concept, abusing export controls and practicing unilateral bullying. "China strongly deplores and firmly opposes the US' move," it said.

Based on sweeping US restrictions on shipments of advanced chips and chipmaking equipment to China unveiled last October, the new rules further tighten export controls on artificial intelligence chips and chipmaking equipment, while adding multiple Chinese companies to a US blacklist.

The semiconductor industry is highly globalized. The US' improper restrictions seriously hinder the normal global trade of chips, related equipment, materials and components, as well as going against market rules and international trade rules, and seriously threatening the stability of global industrial chains, said the ministry.

"US firms will face heavy losses, while chipmakers from other countries will also be negatively impacted," it continued.

"The US is urged to remove its chip export restrictions on China and to build a fair and predictable business environment for companies from other countries including China. The US should join hands with all parties to build a safe, stable, highly efficient, open and inclusive and win-win global industrial chain," the ministry said in a statement on its website.

According to the US-based Semiconductor Industry Association (SIA), China remained the largest single market for semiconductors in 2022, with sales of $180.4 billion, about one-third of the global total.

If the US government completely bans semiconductor companies from selling products to China, it would put US companies at risk of losing 37 percent of their revenue and 18 percent of global market share, as well as losing up to 40,000 high-skilled jobs, according to Boston Consulting Group