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China condemns US semiconductor export controls

China on Thursday condemned the United State’s latest semiconductor export controls, saying they disrupt market rules and the international trade order.

A spokesperson from the Chinese Ministry of Commerce said the US’s latest restrictions will create uncertainty for trade practices in the semiconductor sector and that China will take necessary measures to protect its legitimate rights.

On Monday, the US Commerce Department added 140 Chinese companies to its “entity list”, imposing stricter controls on the export of semiconductor manufacturing equipment and high-bandwidth memory chips to China.

China’s major industry associations have called on local companies to diversify their chip supply chains in response, urging local firms to exercise caution when purchasing US chips. 

In separate statements issued on Tuesday, four associations representing the communication, semiconductor, automobile and internet industries argued that the US government’s frequent changes to export control rules have undermined the reliability and security of US-made chips.

The Internet Society of China called on local companies to expand cooperation with chip companies in other countries and regions. The society also encouraged the use of chips produced by both local and foreign-funded enterprises within China.

The China Association of Automobile Manufacturers suggested that Chinese automakers should be cautious when purchasing US chips as it said these products were no longer safe and reliable.

The China Semiconductor Industry Association said that the US’s unilateral actions have not only harmed the interests of Chinese and US companies but have also significantly increased the costs of the global semiconductor supply chain.

The China Association of Communications Enterprises echoed these concerns, emphasizing the need to safeguard the stability of the industry’s supply chain.

(Cover via CFP)

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