After the US announced new export controls to prohibit the shipment of high-end US cards to China, four Chinese business organizations have asked their members to refrain from purchasing American tradition semiconductors due to” safety” issues.  ,
Individual claims from the Internet Society of China, the China Semiconductor Industry Association, the China Association of Automobile Manufacturers, and the China Association of Communications Enterprises stated that the most recent US device export controls have shaken Chinese firms ‘ trust and confidence in using British cards.
According to the Internet Society of China, Taiwanese companies should carefully select whether to purchase US cards internally or from abroad.  ,
US cards are no longer safe and trustworthy, according to the China Association of Automobile Manufacturers, because Washington’s device export controls against China have hampered American firms ‘ supply chains and raised operating expenses.
The organization did not go into detail about how the change in US export regulations affected the quality of American bits.  ,
Foreign product manufacturers are unsure whether to pursue these organizations ‘ recommendations to cut down on US chips. Some Chinese commentators claimed that the plan will help Chinese device manufacturers long-term increase their market share of lineage chips.  ,
A Hunan-based columnist who uses the pseudonym” Jindou” claims in an article that” the Ministry of Industry and Information Technology ( MIIT ) has stated earlier this year that chips produced in the US will be phased out of China’s telecommunication networks by 2027. ” This is definitely not an empty talk” . ,
He claims that since 2018, China has tremendously increased its investments in nearby chipmakers and related manufacturers, laying the groundwork for the nation to slowly remove US manufacturers from its supply chain.
He claims that China’s chip exports increased faster than its chip goods, demonstrating that it will not need to buy foreign chips again. He claims that the US will shed its position as the world’s leader once China can take control of the lineage device market.
In the first 10 months of this year, China’s chip exports surged 19.6 % year-on-year to 246 billion units while chip imports increased 15 % to 456 billion units, according to China’s General Administration of Customs.  ,
Beijing’s retribution
Wang Feiyun, a Beijing-based journalist, writes that as the US forbids Taiwanese firms from buying its high-end chips, it’s good that Chinese firms reduce their payments of British legacy cards.  ,
According to Wang,” We stop buying US cards, as well as preventing the US from obtaining China’s natural materials,” Wang says in reference to the recent decision by the Chinese Ministry of Commerce to outsource some of the crucial metals used in semiconductor manufacturing to the US.  ,
The Commerce Ministry said on December 3 that the exports of chromium, germanium, arsenic and” superhard components” such as diamond and cubic boron nitride to the US are now totally banned. Additionally, it added that greater end-user checks may be required for exports of graphene elements to the US.  ,
Because China has previously publicly targeted the US, Wang claims that the most recent round of Chinese reprisals is stronger than the previous ones. ” Besides, American companies ‘ exports of Chinese important metal for legal apply are also banned”.
He says it’s a smart move that Chinese business organizations, instead of the Chinese authorities, called for reducing the payments of US cards. He claims that the US will not be able to come up with a justification for filing a World Trade Organization problem.  ,
” It is true that China produces inferior cards. But really, 14-nanometer cards are good enough for making 90 % of electronic materials”, he says. ” And China has already started producing 28nm chips in large numbers with a 95 % yield.”
He claims that the US’s actions against China will only lead to a microprocessor conflict, which will result in US-based companies like Intel and Qualcomm losing market share.
US sanctions ,
Following two previous rounds in October 2021 and 2022, the US Commerce Department’s Bureau of Industry and Security ( BIS ) released the third package of chip export regulations against China on December 2.  ,
The BIS added 140 Chinese chip manufacturers and suppliers to its” Entity List,” as well as new export restrictions for 24 different types of semiconductor manufacturing equipment, three different software tools for creating or producing semiconductors, and high-bandwidth memory ( HBM ) chips.  ,
” This behavior is the pinnacle of the Biden-Harris president’s intended approach, in concert with our allies and partners, to affect the People’s Republic of China’s ability to indigenize the production of advanced technology that pose a threat to our national surveillance”, said US Secretary of Commerce Gina Raimondo.  ,
She argued that the Department of Commerce’s continued expansion of US trade controls highlights its main function in carrying out the country’s broader federal protection strategy.  ,
American media have  , reported , on all these fresh controls over the past few decades, but the news was postponed to this month because the US had to discuss them with its allies, including Japan, South Korea, Taiwan and the Netherlands.  ,
China has “remaining major protests with the US for updating the semiconductor export controls, sanctioning Chinese companies, and deliberately stifling China’s technological development,” according to Lin Jian, a spokeswoman for the Chinese Foreign Ministry, on December 3.
An article published by King &, Wood Mallesons, a Beijing-based law company, said the protection of the latest US device ban is very large as several chip makers ‘ subsidiaries, dozens of state-owned Foreign chip makers and two investment firms were sanctioned.  ,
The chip ban demonstrated that the Biden administration is well-versed in key players in China’s chip industry and that some Chinese chip manufacturers ‘ operations will be impacted in the short run.
Read: China sharpens trade war tools ahead of Trump’s arrival