Xinhua Commentary: U.S. tech suppression of China also stifles American prospects

BEIJING, Dec. 4 (Xinhua) — Amid sustained tech suppression by the U.S. administration, Chinese industrial associations have voiced strong opposition to the latest U.S. control measures concerning semiconductor exports and urged domestic firms to exercise caution when purchasing U.S. chips.
The call for caution is well-founded, as the arbitrary control measures have made the supply chains of U.S. chips insecure and unreliable. When the trust and confidence in procuring chip products from American companies are being shaken, it is certainly worth pondering why.
Driven by a deep-rooted Cold War mentality, the U.S. has resorted to abusing state power in excluding China from key supply chains and restricting China’s ability to climb up the value chain — which seriously hinders normal and healthy economic and trade exchanges.
Such actions not only undermine the legitimate rights and interests of Chinese companies, but also affect the interests of companies in other countries, including the United States itself. They constitute blatant economic and technological bullying, and a serious violation of international trade rules.
The semiconductor industry features a sophisticated global division of labor, encompassing design, manufacturing, packaging and testing. Over the past few decades, the United States has spearheaded industrial innovation and design, while Asia, especially East Asia, has emerged as a leader in manufacturing. This globalization of the semiconductor industry aligns with the fundamental principles of economic development.
However, anti-globalization efforts and increased geopolitical tensions have begun to change some of these trends. Although the Biden administration claims that it has no intention of seeking decoupling from China, it continues to impose barriers on chip exports to the country. These actions cast doubt on the words spoken by the American political leadership — who seem unwilling to walk their talk.
Notably, the U.S. Department of Commerce has intensified control of semiconductor exports to China, while also adding an increasing number of Chinese entities to its export control “entity list.” The U.S. tech suppression of China continues to intensify even in the final weeks of the outgoing Biden administration.
Strategically, the United States is attempting to establish an international alliance in high-tech industries — an alliance which excludes China. Such a strategy is doomed to backfire.
According to the International Semiconductor Industry Association, global chip manufacturing equipment sales will reach 109 billion U.S. dollars in 2024 — with China expected to account for more than 30 percent, the largest market share.
That is why semiconductor heavyweights such as Intel and Micron Technology, despite pressure from Washington, have bucked the political trend by increasing investment or expanding operations in China.
There has also been a growing effort by U.S. companies to lobby the White House to abandon its escalating chip containment policy targeting China, with companies arguing that the current trade policy is counterproductive, as it has the unintended consequences of hurting U.S. semiconductor companies.
Microsoft co-founder Bill Gates has decried the “paranoid” view fueling the high-tech rivalry between the U.S. and China. He believes America and China should take advantage of each other’s innovations — rather than turn against each other.
If competition is inevitable, then it is obviously important to keep an open mind. Competition in the chip industry is not only about scientific and technological research and development, but also about who can best take advantage of an open international cooperation system based on scientific and technological development initiatives and natural market dynamics. Lacking such an open mind will hurt the United States in the long run.
Hegemonic thinking that tries to impose geopolitical confrontations on the economic and technological fields is undoubtedly harmful. Therefore, Washington’s containment and suppression of China will hurt the entire world — including the United States. It’s the hope of every sensible stakeholder in the chip industry as well as the global economy that the United States will change its course and re-embrace the open industrial ecology. ■