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China Expresses Concerns Over US Survey on Chinese Chip Usage in Critical Industries

Photo from Google
Photo from Google

Beijing has voiced apprehensions over the Biden administration’s decision to conduct a survey probing the utilization of Chinese-manufactured computer chips in vital sectors in the United States. Chinese Commerce Minister Wang Wentao conveyed China’s serious concerns during a Thursday phone call with US Commerce Secretary Gina Raimondo. The survey, initiated by the US Commerce Department, specifically focuses on American companies’ acquisition of “legacy chips” with a nanometer size of 28 or above. Wang raised objections to US restrictions on lithography exports to China and sanctions imposed on Chinese firms, emphasizing the bilateral impact.

Photo from Google

Photo from Google

US Commerce Department’s Chip Survey Draws Chinese Criticism

Chinese Commerce Minister Wang Wentao expressed worry over the US Commerce Department’s plan, announced on December 21, to investigate the sourcing of both current-generation and legacy chips by US firms. The focus on “legacy chips” with 28 nanometers or above is particularly irksome to China, as these are crucial components in sectors such as telecommunications, automobiles, and the defense industrial base.

Commerce Secretary Gina Raimondo highlighted concerns about potentially detrimental Chinese practices affecting the US legacy chip supply chain, emphasizing the national security implications. Raimondo pointed to a recent study indicating that Chinese chipmakers received approximately $150 billion in subsidies from the Chinese government over the past decade, potentially distorting the global playing field.

During the phone call, Raimondo reiterated that US national security issues are non-negotiable and clarified that the US government’s approach aims to safeguard national security without unduly restricting trade and investment, emphasizing a balance between security and economic considerations.

READ ALSO: House Democrats Reveal Chinese Government’s $5.5 Million Spending At Trump Properties

In the conversation, Raimondo conveyed a firm stance, asserting that the US government’s strategy is not designed to hinder China’s economic development but rather to secure national security and values.

She emphasized the importance of addressing non-market actions by foreign governments that pose threats to the US legacy chip supply chain, framing it as a crucial matter for national security.

READ ALSO: China Warns US Against Meddling In Taiwan Crisis Amid Military Talks

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