China has threatened retaliation over extended US tech curb. China’s ambassador to Washington declared that China will react if the United States enforces further limitations on its chip sector.
During the Aspen Security Forum, Ambassador Xie Feng emphasized that China is not averse to competition, but they find the U.S.’s definition of competition unfair. He highlighted the current U.S. restrictions on Chinese imports of advanced chip-making equipment.
Xie compared this situation to limiting one side wearing outdated swimwear in a contest against modern gear.
He mentioned Washington’s consideration of an outbound investment review and further bans on exporting AI chips to China.
Xie said the Chinese government won’t be passive; they won’t provoke but won’t back down from provocations either. He mentioned that China will respond, but they do not desire a tit-for-tat situation. Instead, China wishes to move beyond trade and technological wars and bid farewell to the “Iron Curtain” and the “Silicon Curtain.”
U.S. Executive Order and Investment Restrictions
The Biden administration plans to finalize an order restricting investments in advanced tech sectors by Labor Day. This will affect sectors like advanced semiconductors, quantum computing, and artificial intelligence.
In response to U.S. export controls on American components and chip-making tools, China targeted U.S. chip maker Micron Technology, with the Cybersecurity Administration of China stating that Micron did not pass its security review, resulting in the ban of its products for key domestic infrastructure operators.
U.S. Treasury Secretary Janet Yellen, after her visit to China, confirmed that she discussed the proposed order with Chinese counterparts and assured that any investment restrictions would be highly targeted, directed narrowly at specific sectors with specific national security concerns. She added that the order would transparently implement through a rule-making process, including provisions for public input.
China’s concerns about the extended US tech curb aren’t limited to just the semiconductor sector. The overarching tension surrounding China US tech curb affects a wide range of industries, creating uncertainties in the global tech landscape.