China has vowed to take decisive steps to protect its enterprises following the US’s announcement of new chip export restrictions. The measures, introduced on Monday, tighten controls on semiconductor manufacturing equipment, storage chips, and other items, while adding 136 Chinese entities to the US export control entity list. These actions also expand long-arm jurisdiction, affecting trade between China and third countries.
A spokesperson from China’s Ministry of Commerce (MOFCOM) called the measures “economic coercion and non-market behavior,” stating that they interfere with global trade, destabilize supply chains, and undermine international market rules. “China firmly opposes this unilateral bullying,” the spokesperson said, criticizing the US for invoking national security to justify its actions.
China highlighted that the global semiconductor industry, including US companies, will face significant disruption. MOFCOM warned that the measures would harm international economic stability and pledged countermeasures to protect its interests.
Lin Jian, spokesperson for China’s Ministry of Foreign Affairs, reiterated opposition to the restrictions, accusing the US of violating market economy principles and disrupting trade. “China will take resolute measures to defend the lawful rights of its companies,” Lin said.
The new restrictions target companies such as Naura Technology Group, Piotech, and SiCarrier Technology. A Piotech representative noted that their US-related business accounts for a small portion of operations and that the company is working to strengthen domestic product substitution to reduce reliance on imports. Another company confirmed preparations to address potential impacts but declined to provide further details.
Experts warn that the restrictions could harm US interests. Gao Lingyun of the Chinese Academy of Social Sciences stated that the measures could destabilize the US chip industry, given China’s importance to the global semiconductor market. Li Yong, a senior researcher at the China Association of International Trade, said the actions could backfire, likening them to “cutting off its nose to spite its face.”
The Biden administration’s restrictions are part of a broader effort to curb China’s technological progress. Chinese businesses have shown resilience to previous US export controls. Gao suggested this latest move might be the US’s final large-scale attempt to limit China’s chip industry.
In response to earlier reports of planned restrictions, China’s Foreign Ministry criticized the measures and vowed to implement necessary steps to protect its enterprises. “The development of the chip industry requires global cooperation, not unilateral actions,” Gao said.
IMEX SECTOR | UK-Vietnam FTA Boosts Vietnam’s Timber Exports to UK, Aims for Growth
