BEIJING: China’s Ministry of Commerce (MOC) warned that the US has misused export regulations, overreached the notion of national security, and disrupted international supply chains for semiconductors in reaction to recent US actions in the chip sector.
A spokesman for MOC, He Yadong, said on Thursday that the United States has been giving enormous subsidies and tax breaks to its domestic chip industry, and that some policies have forced companies to choose the United States over China. These actions are discriminatory, have broken international economic and trade regulations, and have distorted the global semiconductor industry chain.
After decades of expansion, the semiconductor industry has become increasingly globalized, he claimed. This is due to a combination of market laws and the resource endowments of many nations.
He pointed out that China is dedicated to encouraging high-level opening up and invites international semiconductor companies to invest there in order to support the robust growth of the global semiconductor industry chain.
China has always opposed politicizing and weaponizing economic, trade, and technological issues, but in recent years, the US has abused export controls, unfairly sanctioned and suppressed Chinese enterprises, and seriously disrupted global supply chains. This was in response to the US Department of Commerce’s consideration of adding several Chinese chip companies related to Huawei to the sanctions list.
He stated that if the US continues to restrict Huawei and apply sanctions on other Chinese companies on the grounds of alleged connections, this will be a classic case of economic bullying, breaking international trade and economic regulations and undermining the global trade and economic order.
The spokesperson stated that China will take the required steps to protect the legitimate rights and interests of its firms, while pleading with the United States not to embrace unethical tactics.
