On Saturday, China voiced its disapproval of the United States’ latest decision to tighten export controls, which would make it more difficult for China to obtain and manufacture advanced computing chips, calling it a violation of international economic and trade rules that will “isolate and backfire” on the US.
Foreign Ministry spokesperson Mao Ning said, “Out of the necessity to preserve its sci-tech monopoly, the US abuses export control procedures to intentionally hinder and crush Chinese firms.”
She warned that this would hurt both Chinese and American businesses, saying, “It would impair the legitimate rights and interests of Chinese enterprises.”
Mao also said that the “weaponization and politicisation” of science and technology by the United States, together with its effects on economic and trade difficulties, would not be able to halt China’s development.
She said this after the United States on Friday updated its export controls, which included adding certain advanced, high-performance computing chips and semiconductor manufacturing equipment to its list and implementing new licence requirements for items that would be used in a supercomputer or for semiconductor development in China.
U.S. officials said the new export limitations were implemented to better safeguard national security and international interests.
Concerns about shared technology and national security have contributed to a deterioration in US-Chinese ties in recent years. While China has allocated billions to invest in the manufacture of semiconductors, the United States has enacted a slew of regulations and limitations to prevent China from acquiring chip technology.
Companies in the United States and throughout the world that ship chips to China or produce chips in China have felt the effects of the escalating tensions. The stock price of semiconductor firms like Nvidia and AMD has dropped by almost 40 percent over the last year.
The Semiconductor Industry Association, which speaks for the US semiconductor industry, issued a statement saying, “We understand the goal of ensuring national security and urge the US government to implement the rules in a targeted way — and in collaboration with international partners to help level the playing field and mitigate unintended harm to US innovation.”