Restrictions serve no party's interest: China Daily editorial

In a recent interview, Christophe Fouquet, chief executive officer of ASML, compared US chip restrictions on China to cutting off food supplies in a desert. "If I put you in a desert and tell you that you're not going to have access to food anymore — how long does it take you to make your own garden?" he asked. "It's a matter of survival."

This analogy underscores a critical point: While the United States' escalating export controls might disrupt markets in the short term, they are also pushing China to accelerate its own innovation. This shift from a passive recipient of technology to a proactive innovator highlights China's resilience and determination in the face of the technological walls the US is trying to erect.

The global semiconductor industry is undergoing profound changes. The rise of artificial intelligence, 5G communications and autonomous driving has fueled a surge in demand for high-end chips. Market research suggests that by 2030, the global chip market could reach $1.5 trillion. In response to these trends, the US seeks to curb China's growth by restricting advanced semiconductors and fabrication equipment and urging its allies to do the same. However, such protectionist policies, shortsighted as they are, threaten global supply chain stability and may cause the US to miss out on key opportunities in the semiconductor sector.

As the world's two largest economies, cooperation and mutual benefit are the best choices for both China and the US, and attempts to use technological restrictions to halt China's innovation progress will lead nowhere.

China's 15th Five-Year Plan (2026-30) places technological innovation at the core of the national development strategy. The plan states that accelerating high-level technological self-reliance and self-improvement is the key to leading the development of new quality productive forces.

Through systematic measures such as enhancing original innovation, tackling core technologies and strengthening the role of enterprises, the plan presents a clear road map for China's technological progress.

Recent China-US economic and trade consultations in the Republic of Korea produced generally balanced and positive outcomes, as the two sides reached a consensus on major issues such as tariff arrangements, councils to manage trade and investment disputes, and agricultural trade, showcasing a spirit of mutually beneficial cooperation. This cooperation model, grounded in mutual respect, equality and reciprocity, is the rational way to handle trade and technology disputes between the two sides.

Both countries and the global tech industry have much to gain from their collaboration.

In particular, the two sides agreed in principle to discuss a framework for reciprocal tariff reductions on products of equal value under the trade council, with each side committing to $30 billion or more. This will help the two countries establish a stable trade framework. The agreements will bring greater certainty and stability to the next phase of China-US economic and trade relations, and to the global economy as well.

China is building a comprehensive innovation ecosystem, spanning from basic research to industrial applications. This enhancement in self-innovation capability serves as the best defense against technological blockades. Consequently, China is accelerating breakthroughs in several "choke point" technologies, ranging from lithography machines to AI chips.

Recently, China's three major telecom operators launched AI token packages, marking a new step in the country's AI development. This innovative model not only lowers the barriers to AI technology use, but also provides strong momentum for industrial upgrading. It has injected new vitality into global technological progress as well.

While US restrictions will continue to pose challenges, they also present incentives for China to innovate and thrive independently.

Yet the path forward lies in cooperation, not confrontation. By working together, China and the US can create a more stable and prosperous global tech landscape. But this requires dialogue, mutual understanding and a commitment to shared goals.