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U.S. Chip Policy against China Has Shown Results

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that the Chinese tech giant Huawei is once again facing new technology curbs amid an escalation in U.S.-China strategic competition. Some scholars pointed out that, under the cooperation of the United States, Japan and the Netherlands, China’s semiconductor industry is facing real danger. Also, two months after China’s largest chipmaker, Yangtze Memory Technology, was included in the “Entity List” of entities banned by the U.S. Department of Commerce, it announced plans to lay off 10 percent of its workforce. The U.S. government has stopped issuing permits to U.S. companies to export most products and technology to Huawei. This move highlights that the United States has further tightened regulations and related policies on technology exports to China. Chinese Foreign Ministry spokesperson Mao Ning said at a press conference, “This is blatant technological bullying. This practice violates the principles of the market economy and the international economic and trade rules. It damages the international community’s confidence in the U.S. business environment. Mao also emphasized that the bullying behavior seriously undermines the order of international trade. Not only does it damage the legitimate rights and interests of Chinese enterprises, but it also affects the stability of the global industrial chain and the supply chain. Part of the reason for the move by the U.S. Ministry of Commerce is that Huawei has changed a lot compared to when it focused on 5G four years ago. For example, Huawei has expanded its business to submarine cables, cloud computing and other fields. Huawei has yet to comment on the matter.

Source: NetEase, February 1, 2023