China opposes revised US chip export restriction, calls for predictable business climate

Production of semiconductor chip File photo: VCG

Production of semiconductor chip File photo: VCG

China has expressed strong opposition to the latest US revised rules on artificial intelligence (AI) chips export rules, saying that it will disrupt the international semiconductor market as well as cooperation among enterprises. 

The remarks were made by China’s Ministry of Commerce (MOFCOM) on Sunday, noting that US’ latest revision of semiconductor export controls came less than six months since the US introduced the rule. 

The Biden administration on Friday (US time) revised rules aimed at making it harder for China to gain access to US AI chips and chipmaking tools, as part of the US efforts to curb China’s chipmaking industry over “national security concerns.”

The new rules, which run 166 pages, will go into effect on April 4, and they expand the restrictions to laptops containing those AI chips, Reuters reported. 

Enterprises from all countries, including those from the US, want a stable and predictable business environment, said the MOFCOM. 

The abuse by the US of national security concepts, reckless modification of rules and tightening of control measures have not only set up more obstacles to normal economic and trade cooperation between Chinese and US enterprises and imposed a heavier burden for compliance, but also created huge uncertainty for the global semiconductor industry, the MOFCOM noted. 

The revision of the US chip export rules has seriously affected the mutually beneficial cooperation between Chinese and foreign enterprises and harmed their legitimate and lawful rights and interests, said the MOFCOM, reaffirming that China strongly opposed the revision. 

In October 2023, the US initially introduced an export restriction on related chips and semiconductor manufacturing equipment to China, seeking to halt shipments of more advanced AI chips designed by Nvidia and other companies.

The MOFCOM said that the semiconductor industry is highly globalized, and has formed an industrial pattern that involves multiple parties, thanks to the law of the market and corporate choices.

The MOFCOM stressed that China is the world’s largest semiconductor market, and it is willing to work with all parties to strengthen mutually beneficial cooperation and promote the security and stability of the global semiconductor industry chain.

Global Times

China strongly rejects US report on foreign trade barriers

The Ministry of Commerce (MOFCOM) Photo: VCG

The Ministry of Commerce (MOFCOM) Photo: VCG

China’s Ministry of Commerce (MOFCOM) on Tuesday strongly rejected the US’ National Trade Estimate Report on Foreign Trade Barriers, which listed China as the country of “primary concern.” The ministry urged the US to fully comply with WTO rules instead of making false accusations against other countries.

MOFCOM pointed out that whether countries’ trade policies constitute barriers should be judged by whether they violate WTO rules, adding that the US report didn’t present any evidence showing that China has violated the rules. The report arbitrarily accuses China of having so-called “non-market policies and practices” and barriers related to agricultural products and data policies. China strongly opposes this.

Since its accession to the WTO, China, as the world’s largest developing country, has always firmly supported the multilateral trading system, while also expanding its high-quality opening-up, continuously improving its socialist market economy system and legal system, and insisting on giving full play to the decisive role of the market in resource allocation, which has been widely recognized and appreciated by the international community, said MOFCOM.

The US side, however, adheres to an “America first” strategy. It disregards multilateral trade rules, arbitrarily imposes unilateral tariffs on other countries, formulates discriminatory industrial policies, abuses measures such as export controls and investment restrictions on the grounds of “national security,” restricts the participation of foreign-backed enterprises in the US in government procurement, and sets a large number of trade barriers on purpose that impede fair competition, MOFCOM stressed. This has caused concern among WTO members including China, the ministry noted.

China urges the US to halt its groundless criticism of other countries, fully comply with WTO rules, and protect a just and fair international trade order, said MOFCOM.

The office of the US Trade Representative released the annual report on Monday, which alleged that China has created “trade barriers” related to food safety requirements, industrial policies for advanced manufacturing, and data regulations.

Global Times