The US has implemented a number of export restrictions on semiconductors created in the US, which the Chinese government has criticised since Washington believes Beijing may use them to create the next generation of weapons and artificial intelligence (AI) systems.
Ahead of President-elect Donald Trump’s upcoming inauguration, the new policies announced by the departing Biden administration have intensified political tensions between the top two economies in the world. Self-sufficiency is a key component of Chinese leader Xi Jinping’s economic plan to establish China as a technological giant. The goal of the new controls, US Commerce Ministry officials said, was to slow China’s development of advanced AI tools that can be used in war and to undercut the country’s homegrown semiconductor industry, which threatens the national security of the US and its allies.
China’s Commerce Ministry condemned the move, accusing the US of “abuse” of export controls and posing “a significant threat” to the stability of global industrial and supply chains.
“The US preaches one thing while practicing another, excessively broadening the concept of national security, abusing export control measures, and engaging in unilateral bullying actions. China firmly opposes such actions,” the ministry said in a Monday statement.
The race for an edge in military technology has shaped US-China relations amid growing US concerns about a potential Chinese invasion of Taiwan in the coming years. China’s ruling Communist Party, which claims the self-ruled democratic island as its own territory despite never having controlled it, has adopted an increasingly aggressive stance toward Taiwan in recent years. Monday’s announcement is the third round of export restrictions imposed on Beijing by the Biden administration in as many years. Last October, the Commerce Ministry reduced the types of semiconductors that American companies can sell to China, citing the desire to close loopholes in regulations announced in 2022.
In September, the Commerce Ministry separately proposed a ban on the sale or import of smart vehicles that use specific Chinese or Russian technology, citing security concerns. The incoming Trump administration has also talked tough on China, including by threatening tariffs.
For its part, China is intensifying its goal to dominate advanced technologies of the future. In May, Beijing announced plans to set up its largest-ever semiconductor state investment fund worth $47.5 billion. With investments from six of the country’s largest state-owned banks, including ICBC and China Construction Bank, the fund underscores Xi’s push to bolster China’s position as a tech giant.
Source: Here