On Saturday, China issued a statement condemning the most recent U.S. decision to tighten export limits, which would make it more difficult for China to purchase and manufacture modern computing chips. China called this a violation of international economic and trade laws that will isolate and backfire on the United States of America.
According to a spokesperson for the Chinese Ministry of Foreign Affairs, Mao Ning, because of the necessity to sustain its sci-tech monopoly, the United States abuses export control procedures to maliciously restrict and suppress Chinese firms.
She stated that it would not only be detrimental to the legal rights and interests of Chinese companies, but it would also have an effect on the interests of American companies.
Mao also stated that the weaponization and politicization of science and technology by the United States, in addition to difficulties pertaining to economics and trade, will not halt China's development.
She made these comments after the United States implemented new export controls on Friday. As part of these new controls, the United States added certain advanced, high-performance computing chips and equipment for manufacturing semiconductors to its list. Additionally, the United States implemented new registration requirements for items that would be utilized in a supercomputer or for the development of semiconductors in China.
According to statements made by the United States government, the addition of the export controls was made as part of continuous efforts to preserve the national security and foreign policy objectives of the United States.
In recent years, tensions between the United States and China have increased due to disagreements over several technological and security matters. While China has budgeted billions of dollars for investment into the manufacturing of semiconductors, the United States has enacted a slew of prohibitions and limitations aimed to prevent China from getting chip technology.
The tensions have had an effect on semiconductor companies located in the United States and around the world, particularly those companies that make chips in China or export chips from China. The stock prices of semiconductor companies such as Nvidia and AMD have decreased by forty percent over the course of the past year.
The Semiconductor Industry Association, which speaks for the American semiconductor industry, said in a statement that it understands the aim of maintaining national security and urges the U.S. government to execute the guidelines in a targeted fashion — and in coordination with international partners to help level the playing field and prevent unintentional harm to American innovation.
The preceding is a summary of an article that originally appeared on Headline Wealth.