Chip export ban backfires to hit American firms

According to US media, the CEOs of the three major chip giants in the United States, namely Intel, Qualcomm and Nvidia, are planning to visit Washington next week to hold talks with US government officials and members of Congress in an attempt to persuade the Joe Biden administration to abandon the newly proposed restrictions on chip exports to China.

Sources revealed that the three chip giants believe there is a window of opportunity to convince the Biden administration that further escalation of the situation would harm the current diplomatic efforts to engage with China and establish more productive relations.

The report states that these companies also believe that severing ties with the Chinese market would damage their investment capabilities in advancing technological development, ultimately leading to weakened US tech leadership.

It's clear that US companies, whose interests have been hurt by the US government's hostile policies targeting China in the technology sector, are now voicing their objections. To quote a Chinese Ministry of Commerce spokesperson speaking on July 6, the US has been continuously abusing export control measures and intensifying the suppression and containment of semiconductors to China, intentionally dividing the global semiconductor market. These behaviors undermine free trade, disregard international economic and trade rules, and trample upon the principle of fair competition.

Semiconductors are a typical representative of the global industrial division and cooperation. China is the world's largest semiconductor market, accounting for approximately one-third of global chip sales. This is the result of mutually beneficial cooperation between Chinese and foreign companies. The US' approach not only harms the legitimate rights and interests of Chinese companies but also seriously affects the interests of many countries and regions, hindering global technological exchanges and economic cooperation. Ultimately, it will backfire on itself, as is evident from the concerns expressed by the US industry.

By politicizing, instrumentalizing and weaponizing technology and economic issues, the US cannot hinder China's development, and will only end up blocking itself and suffering from the consequences.