China’s industrial sector is responding to the expanding U.S. semiconductor export controls. On December 3, China’s major industry associations issued statements urging caution among companies when purchasing U.S. chips [para. 1]. This follows the U.S. Department of Commerce’s move to restrict China’s semiconductor capabilities by adding 140 entities to its entity list and imposing controls on semiconductor manufacturing equipment and AI-related components [para. 2]. The U.S. government justifies these actions as necessary for national security, citing China’s military advancements [para. 3].
The China Semiconductor Industry Association has accused the U.S. of violating international trade principles and damaging the global semiconductor supply chain’s stability. The association emphasized that unilateral U.S. actions raise global costs and disrupt the supply chain [para. 4]. As the adverse effects of the U.S. export controls spread, they increase operational costs for American companies and affect U.S. products’ stability and reliability, prompting Chinese industries to reconsider purchasing U.S. chips [para. 5].
The China Association of Automobile Manufacturers condemned U.S. measures as disruptive to international economic order and harming global industrial stability. They expressed concerns about the reliability of U.S. automotive chips and advised caution in chip purchases [para. 6]. Similarly, the China Internet Association denounced the U.S.’s trade barriers and called for domestic firms to explore alternatives to U.S. chips and bolster cooperation with other regions to ensure industry stability [para. 7].
The China Communications Enterprise Association accused the U.S. of economic bullying and undermining global market principles through excessive security measures. The association highlighted the negative impact on China’s information and communications industry and urged for reinforced supply chain security [para. 8]. China’s Ministry of Commerce criticized the U.S. for overreaching its jurisdiction, calling the measures coercive and against market norms, and reiterated China’s opposition to such unilateral actions [para. 9].
According to an industry analyst, the associations’ statements reflect governmental intentions to minimize reliance on American chips unless absolutely necessary [para. 10]. China’s automotive and internet sectors are among the largest consumers of American chips. In automotive technology, U.S. companies like Nvidia and Qualcomm dominate the smart driving chip market [para. 11]. American semiconductor products also play a crucial role in the automotive industry, with firms like Texas Instruments and Broadcom being significant suppliers [para. 12].
In the internet sector, Intel and AMD hold substantial shares of the data center CPU market, despite Chinese companies advancing their chips. American firms also significantly contribute to other data center technologies [para. 13]. U.S. chip giants like Qualcomm and Marvell significantly depend on China for revenue [para. 14]. Following the statements from Chinese industry associations, U.S. chip stocks faced declines, indicating market unease [para. 15]. Additionally, cybersecurity reviews have targeted U.S. firms like Micron, with significant implications for product sales in China [para. 16].
The China Cyberspace Security Association has raised concerns about Intel’s product vulnerabilities and reliability, calling for comprehensive security reviews. This highlights ongoing scrutiny and potential risks to American tech firms in the Chinese market [para. 17].
AI generated, for reference only