China criticizes latest US export curbs on chips

BEIJING (AFP) – China on Saturday criticized the latest US decision to tighten export controls This would make it difficult for China to obtain and manufacture advanced computing chips, calling it a violation of international economic and trade rules that would “isolate and backfire” on the United States.

“Out of the need to maintain its scientific and technological dominance, the United States is violating export control measures to maliciously ban and suppress Chinese companies,” said Foreign Ministry spokeswoman Mao Ning.

“It will not only harm the legitimate rights and interests of Chinese companies, but also affect the interests of American companies,” she said.

Mao also said that US “weaponization and politicization” of science and technology as well as economic and trade issues will not stop China’s progress.

She was speaking after the United States on Friday updated export controls that included adding some advanced, high-performance computing chips and semiconductor manufacturing equipment to its list, as well as new licensing requirements for items that will be used in supercomputers or for semiconductor development in China.

The US said export controls were added as part of ongoing efforts to protect US national security and foreign policy interests.

Relations between the United States and China have deteriorated in recent years due to technology and security issues. The United States has implemented a set of measures and restrictions designed to prevent China from acquiring chip technology, while China has committed billions of dollars to invest in semiconductor production.

The tensions have affected semiconductor companies in the United States and globally, which either export chips or manufacture chips in China. Semiconductor companies like Nvidia and AMD have seen a 40% drop in stock prices over the past year.

“We understand the goal of ensuring national security and urge the U.S. government to implement the rules in a targeted manner—and in cooperation with international partners—to help level the playing field and mitigate unintended harm to American innovation,” according to the Semiconductor Industry Association, which represents the U.S. semiconductor industry, in a statement. .