Latest study US-China economical and safety Review Commission, a body monitoring economical relations and safety between the US and China, seems amazing in the context of the trade restrictions introduced. The paper points to the unexpected effects of trade restrictions imposed by Washington on the People's Republic of China.
Trade restrictions and deficiency of expected effects
In 2022, the US government decided to introduce a number of export restrictions to halt the improvement of the Chinese semiconductor industry. However, the US-China economical and safety Review Commission study clearly shows that these sanctions did not produce the expected effects.
Export of semiconductors and measures taken
Export restrictions contributed to a noticeable drop in US exports of semiconductors to China – by about 50% compared annually. Nevertheless, Chinese companies proceed to acquisition American chips and equipment for their production, utilizing the export control gaps not included in the restrictions. In the first 8 months of 2023, Chinese companies purchased US chips and equipment worth about $3.1 billion.
Consequences of trade restrictions and their alternatives
The study points out that China has increased its purchases of chip tools from another countries, mainly Japan and the Netherlands, despite export restrictions. For example, imports of semiconductor equipment from the Netherlands increased by 96.1% compared to the erstwhile year, reaching USD 3.2 billion between January and August 2023.
Technological advancement of China – Non-stop
Restrictions on exports of semiconductor equipment from the US to China did not inhibit technological advancement in the country. The study highlights the latest smartphone HuaWei Mate 60 Pro, which uses high-grade 7-nanometer chips produced most likely by Chinese component manufacturers of this type. US-China economical and safety Review Commission warns that export restrictions may not only neglect to meet their intended goals, but... even undermine the global technological advantage of American companies.
PS. We encourage you to read the US-China economical and safety Review Commission report, which contains many interesting conclusions showing the ineffectiveness of US trade sanctions policy towards China and their impact on the technological improvement of the country.
Source: uscc.gov/annual-reports
Author: 梁安基 Andrzej Z. Liang, 上海 Shanghai, 中国 China
Email: [email protected]
Editorial: Leszek B.
Email: [email protected]
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