China criticizes US attempt to block access to chip technology

China criticizes US attempt to block access to chip technology

The Chinese government has strongly condemned recent US export controls on US-made semiconductors. Washington fears that Beijing could use these technologies to develop the next generation of weapons and AI systems. These new measures, announced by the outgoing Biden administration, have heightened political tensions between the world's two leading economies, particularly in light of the impending inauguration of President-elect Donald Trump.

New export controls from US authorities

On Monday, the U.S. Commerce Department said it was imposing restrictions on the sale of two dozen types of semiconductor manufacturing equipment and blocking several Chinese companies from accessing American technologies. The aim of these new controls is to slow China's development of advanced AI tools that could potentially be used in war and weaken the country's domestic semiconductor industry. This industry is viewed as a threat to the national security of the United States and its allies.

China reacts sharply to the measures

China's Commerce Ministry has condemned the US's actions, accusing it of abusing the export control framework and posing a "significant threat" to the stability of global industries and supply chains. In one statement on Monday it said: "The US preaches one thing and practices the other by overly expanding the concept of national security and taking unilateral actions. China firmly opposes such actions."

Technological race between the USA and China

The race for military technological superiority has shaped U.S.-China relations, especially amid growing concerns about a possible Chinese invasion of Taiwan in the coming years. China's ruling Communist Party views the self-governing democratic island as its own territory, although it has never been under its control, and has taken an increasingly aggressive stance toward Taiwan in recent years.

The USA's strongest controls against China

Senior US officials have also accused China of openly stealing American AI software, something Beijing denies. "These are the strongest controls ever enacted by the United States to reduce the PRC's ability to produce the most advanced chips it uses to modernize its military," Commerce Secretary Gina Raimondo told reporters, referring to the country's official name, the People's Republic of China.

Further restrictions in sight

Monday's announcement represents the latest round of export restrictions imposed by the Biden administration against Beijing. In October last year, the Commerce Department reduced the types of semiconductors American companies can sell to China to close regulatory loopholes. In September, the Commerce Department also proposed a ban on the sale or import of smart vehicles that use certain Chinese or Russian technologies, citing safety concerns. The incoming Trump administration has also hinted at tough measures against China, including the threat of tariffs.

China's goals in the technology industry

For its part, China is increasing its efforts to become a leader in future technologies. In May, Beijing announced plans to set up the country's largest-ever semiconductor sovereign investment fund at $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 strengthen China's position as a technology power.