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US imposes stricter controls on chip trade with China, Foreign Ministry responds
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2024-07-17 18:02
On June 17, Foreign Ministry Spokesperson Lin Jian held a regular press conference. A reporter asked that the United States is considering stricter measures to put pressure on companies in countries such as Japan and the Netherlands to restrict their chip trade with China. Do you have any comment?
Lin Jian said that China has repeatedly stated its solemn position on the malicious blockade and suppression of China's semiconductor industry by the United States, and the United States has politicized, pan-security, and instrumentalized economic, trade, and technological issues, continuously increased chip export controls against China, coerced other countries, suppressed China's semiconductor industry, seriously undermined international trade rules, and damaged the stability of the global production and supply chain, which is not conducive to any party. China has always firmly opposed this.
Lin Jian said that he hoped that relevant countries would distinguish between right and wrong, resolutely resist coercion, jointly safeguard a fair and open international economic and trade order, and truly safeguard their own long-term interests.
According to the report, this situation shows that the efforts of the United States and its allies to block China in the field of semiconductors have not succeeded, and the US government is in an embarrassing situation. Policies related to trade restrictions on China in the semiconductor sector have cost American companies billions of dollars in lost revenue. U.S. companies argue that export restrictions to China unfairly penalize them.
According to Bloomberg, sources revealed that the three major U.S. chip equipment manufacturers, Applied Materials, Kelei and Lam Research, have repeatedly told U.S. officials recently that the U.S. government's current trade policy is counterproductive and harms the interests of U.S. semiconductor companies, but it has not stopped China's development as the U.S. government hopes. These companies also do not want the U.S. government to apply the FDP rule. They feared that this would anger Japan and the Netherlands, causing them to become aggressive and stop cooperating. International companies will also have more reasons to remove U.S. products from their supply chains to avoid new controls.
According to some people familiar with the matter, Japanese government officials have said that they will not enforce such measures. Both Japanese and Dutch officials declined to comment on the matter.
Recently, it was reported that people familiar with the matter revealed that the United States is putting pressure on Japan and the Netherlands, saying that if companies such as Tokyo Electron and ASML continue to provide advanced semiconductor technology to China, the United States will consider taking the most severe trade restrictions.
In order to influence allies, the U.S. is considering whether to apply the "foreign direct product rule," the people said. As a rule in the U.S. export control regime, it allows the U.S. to impose controls on foreign-made products as long as they use U.S. technology. The measure, which is reportedly seen by U.S. allies as too draconian, will hit the business of Tokyo Electron and Dutch company ASML in China. According to anonymous sources, the United States is pitching the idea to officials in Japan and the Netherlands, which is increasingly likely to happen if these two countries do not tighten measures against China.
Bloomberg said in a report that the share price of Tokyo Electron led the decline of 8% on the afternoon of the 17th, and the share prices of other chip equipment manufacturers in Japan such as Lasertec Company and Screen Group also fell significantly.