The sanctions are part of an executive order signed by US President Joe Biden on August 9 (local time) aimed at blocking US capital and expertise from helping develop technologies that could aid the modernization process. United States undermining China’s military and national security.
According to Reuters, the order allows the US Treasury Secretary to ban or restrict US investment in Chinese entities in three areas: semiconductors and microelectronics, quantum information technology and certain systems, artificial intelligence.
Hours after Mr Biden signed the measure targeting “countries of concern”, sharp reactions came from China’s commerce and foreign ministries.
station wise cnbcChina’s Foreign Ministry called the act “gross economic coercion and technology bullying” on 10 August, while China’s Ministry of Commerce urged the US to respect market economy and competitive principles. Fair competition, not an obstacle to global economic and trade cooperation and not an obstacle to the recovery of the world economy.
Several people attend the World Artificial Intelligence Conference (WAIC) in Shanghai-China in July 2023 Photo: REUTERS
From October 2022, the US has stepped up measures to block exports of critical semiconductor chips and equipment to China, and is lobbying major chip-producing countries such as Japan and the Netherlands to act.
In response, in July 2023, China restricted the export of gallium and germanium, two important metal groups in semiconductor production.
To counter US sanctions, China should focus on improving its domestic technological capabilities, said Pan Yuan, a researcher at the Chinese Academy of Social Sciences.
Fear also comes from the opposite direction. according to the newspaper south china morning postAmerican semiconductor companies have called on the Biden administration to ensure uninterrupted access to the Chinese market.
The Semiconductor Industry Association (SIA) in the US says that ensuring the US semiconductor industry is strong and globally competitive is “critical” to protecting national security.
According to SIA, access to the Chinese market, the world’s biggest consumer of semiconductors, is critical to avoid undermining the positive impact of the $200 billion Science and Chips Act. Biden’s mandate to stimulate the US semiconductor industry.