Chinese companies preparing to counter U.S. chip dominance

The U.S.-China tensions continue to rise but Chinese companies are now preparing to fight against the needless dominance in the chip war. In a recent interview, several experts put forth their opinions and responded on this matter.

According to the inputs, the Chinese ambassador – Tan Jian shared his thoughts in an interview with NRC publications and said that the Chinese companies will strongly fight against the U.S. chip dominance war.

Tan said that the U.S. has unnecessarily increased the restrictions on the name of security. Notably, these prohibitions also cover such matters that have nothing to do with the users’ safety or privacy threats. Meanwhile, the U.S. authorities are doing the same with other fellows like Russia.

Hence, it is important to take a step against increased controls, political pressure, and disinformation that are blocking Chinese companies from operating in their respective fields. Yet, the focus will be to respond suitably without affecting the bond and relationship with the European Union.

“If the Americans treat us in a hegemonic manner, we will of course respond. But our relationship with the EU should not be affected.” – said Tan Jian in the NRC interview.

U.S. Restrictions Impact:

Chip makers like ASML are facing challenges after the Dutch government put a barricade on its export licenses at the request of U.S. President Joe Biden. As a result, the company had to cancel its shipments of some machines to China.

On the other hand, the U.S. trade pressure on firms like Huawei is not a secret to us. The Chinese tech maker went through several obstacles that curbed it from using high-end technologies from the foreign market or selling its products.

U.S. Response to Tan’s comment:

White House spokesperson – John Kirby said that the U.S. restrictions only aim to remove the risk factors and not affect the nation’s bond with other countries. The decision regarding export licenses only works to protect the U.S. national security.

On the flip side, Tan believes that European-China policy has just become confusing. Yet, Chinese companies are preparing themselves and will respond to the constant U.S. chip dominance.

Firms like Huawei already started shifting their focus on native partners such as SMIC and stripping off their public relations in the U.S. ground. The Chinese tech maker aims to gradually eliminate the dependency on foreign trade and diminish their impact on its growth.

(Source)