The extent of the impact of the US exclusion zone around China’s tech sector can be seen in what happened to the value of listed companies in the advanced chip sector. Companies in the US, Taiwan, Europe, Japan and South Korea lost more than $240 billion in market value in just over a week, according to Bloomberg calculations.
One US company, Nvidia, says it will lose $400 million in revenue in a quarter due to new rules.
This is unlike previous attempts by the Trump and Biden administrations to target specific Chinese companies to block access to advanced technology (the Huawei ban is a prime example), and the new rules because it targets virtually all Chinese companies. They, or their U.S. or foreign suppliers, must apply for a license to obtain or provide access to advanced chip technology.
The fact that China has already invested so much money yet has yet to succeed in developing a self-sustaining domestic industry (amid mass waste and corruption allegations) suggests that the U.S. move could be a threat to China’s ambitions. It emphasizes how much damage will be done tocredit:bloomberg
If the U.S. strategy proves to be effective, and the reaction of a wide range of non-Chinese companies operating in the sector that has frozen trade with China, suggests it may be. If so, it would cut China off from most important components of 21st century technology.
Older chip designs and manufacturing techniques could still be used, but would fall far behind the United States and its allies in the fight for technological supremacy. The fact that China has already invested so much money yet has yet to succeed in developing a self-sustaining domestic industry (amid mass waste and corruption allegations) suggests that the U.S. move could be a threat to China’s ambitions. It emphasizes how much damage will be done to
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This is because countries such as Taiwan, South Korea, Japan, and the Netherlands (where state-of-the-art chip-making equipment is built), which play key roles in the complex semiconductor ecosystem, have had limited Despite the talks, it is premised on keeping pace with the United States. that new rule.
But beyond geopolitical leadership, the US dominance in chip design and designing chip manufacturing tools has made it a highly influential player with influence within its ecosystem.
China’s semiconductor industry was shocked by the new US rules. More than 300 of his attendees from the sector attended a virtual conference hosted by the China Semiconductor Industry Association (CSIA) to discuss how they would respond to US actions. – Discriminatory practices in the industry.
He also said there was little hope in the new environment where Chinese companies have access to cutting-edge chips, damaging the global semiconductor industry and impacting “countless” downstream sectors and “millions” of U.S. urged the United States to reconsider the measures advocated by of workers and professionals.
If the U.S. strategy proves to be effective, and the reaction of a wide range of non-Chinese companies operating in the sector that has frozen trade with China, suggests it may be. If so, it would cut China off from most important components of 21st century technology.
Having cut China off from the global sector and developed ways to complicate and delay, if not completely hamper, both its industrial and military ambitions, it is unlikely to see the United States retreat unless there is a rebellion by its own allies. Difficult. In the United States, bipartisan support for chip laws, a tougher stance on China, and a more comprehensive decoupling of the Chinese economy from the West.
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After imposing tough sanctions on technology exports to Russia in response to an invasion of Ukraine, officials in the Biden administration have cited technology export controls as a new strategic asset for the US to impose costs on adversaries. I’m here. US National Security Advisor Jake Sullivan said those sanctions forced Russia to use chips taken from dishwashers in military equipment.
Relations between the United States and China have become increasingly hostile, and China continues to openly express its ambition to overthrow the United States from its position of international economic and military dominance. That decision for businesses and citizens at home, and for businesses and citizens in our Asia-Pacific and European allies.
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