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If Washington institutes a US ban on chip exports, according to a Chinese expert, that will stunt global growth for the US significantly, like shooting itself in the foot.
The US ban on chip exports last Friday will be detrimental to the global growth of the semiconductor industry. Washington's attempt to stop the shipment of types of chips and the equipment used to make them will harm the global supply.
Global Growth Affected by Ban on Chinese Chip Export
Such a move by the Biden administration is a significant shift in the policy regarding shipping technology to Beijing from the 1990s. One observation is the attempt to suppress China's technological rise has failed, reported the Global Times.
All multinational corporations globally can be hurt by the actions of the White House, including US enterprises that profited from the Chinese expansion. Experts estimate this will be a further long-term stall for the worldwide semiconductor industry.
Mao Ning, the spokesperson for China's Foreign Ministry, stated last Saturday that the new export controls stop all international tech exchanges and economic cooperation, affecting stable industrial and supply chains for worldwide economic recovery, noted Swarajya.
The Chinese spokesman remarked that the use of technology that is politicized and weaponized is not enough to halt Chinese advancement but hurts America instead. Should export control work, it could cripple the Chinese chip industry, which will cut off factories and chip designers from global growth, citing Reuters.
On Friday, one of China's top memory chip makers YMTC with 30 other firms included in a trade list in the US ban on chip export. Donald Trump has targeted the Chinese chip industry, and Joe Biden's recent attempt has ended ineffectually, remarked an expert in the telecom industry, Ma Jihua.
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According to another source, the Biden administration cannot control the global chip industry through hegemony or a few policies.
Washington's New Export Rules
One prevailing opinion is that Washington is destructive, and it will cause damage to it and other countries involved in global industries and supply chains. Not all tech companies will follow destructive US policies that will hamper profits; if Chinese chipsets are affected by a ban, then there will be no orders.
US allies and the Chip 4 alliance are changing with South Korea and Japan, who are okay with the US but are wary. No news has been reported yet about it.
Ma added that not everyone agrees with the US government; not all are willing to risk too much.
Observers see the push by the Biden administration to cut China out of the equation, which would be disastrous for US and international firms with massive losses. One company, Nvidia, lost $400 million in sales due to Washington's measure and is seeking an exemption.
Many see the measure as a big mistake that can cause losses to 30% of US and global chipmakers because China is their biggest customer, stated Han Xiaomin.
Several chipmakers are considering reducing the impact of misguided US export controls causing havoc. Sky Hynix remarked it would embark on measures to comply with the new rules to continue doing business.
The Semiconductor Industry Association urged Washington to wisely apply these new rules, not to cause further harm. Implementing a US ban on chip exports is seen as a threat to global growth in the face of a worldwide recession; a reckless thrust is dissuaded.
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