Shanghai Expo in China Bustling with US Companies... Anticipation for US-China Summit

'Micron Sets Up First Booth Amid "Reconciliation Mood" with China
AMD, ASML, Samsung Also Participate, Drawing Attention
Reconciliation Mood Noted Ahead of Biden-Xi Jinping Meeting'

As Western companies, including those from the United States, flock to China's International Import Expo (CIIE), where China has clashed with the U.S. over semiconductor dominance, attention is focusing on the background of this trend. U.S. semiconductor company Micron, which has been sanctioned by China, and Dutch semiconductor equipment maker ASML, whose core equipment exports have been blocked due to U.S. export restrictions to China, have set up booths and are seen communicating with local government and business officials, showing efforts to improve relations.

Amid efforts led by the business community to restore U.S.-China relations, expectations are rising that a full-fledged reconciliation mood between the two countries could begin as U.S. President Joe Biden and Chinese President Xi Jinping are expected to hold a summit on the 15th.

[Image source=Reuters Yonhap News]

U.S. Semiconductor Firms at China Expo? "Hope to Strengthen Cooperation"

According to reports from the South China Morning Post (SCMP) and others on the 7th (local time), 47 semiconductor-related companies including Samsung Electronics, Micron, Qualcomm, AMD, and ASML participated in the integrated circuit pavilion at the CIIE held in Shanghai from the 5th to the 10th, setting up booths and meeting with local customers.

The CIIE is an import-focused expo that China has promoted since 2018 with the aim of opening up to the outside world and expanding imports. It is known as an event to which President Xi has devoted considerable attention, even being directly involved in the planning stage.

The most notable participant at this event was Micron. Earlier, in May, China declared a purchase ban on Micron products, citing serious security issues found in them and stating that they failed to pass security reviews. This was interpreted as a kind of "retaliatory sanction" imposed by China in response to U.S. semiconductor export restrictions.

However, recently, the Chinese government has shown signs of reconciliation by meeting with Micron CEO Sanjay Mehrotra and others. Micron set up a booth at this event for the first time this year, which was also visited by Wang Wentao, China's Minister of Commerce, and Nicholas Burns, U.S. Ambassador to China.

On the 6th (local time), Nicholas Burns, the U.S. Ambassador to China, attended the China International Import Expo (CIIE) held in Shanghai, China. [Image source=Reuters]

An employee at the Micron booth said that U.S. companies are facing business difficulties and are trying to improve relations with China, and that they deployed 70 to 80 staff members at this booth to show trust in China.

Another U.S. semiconductor company, AMD, also participated in the event for the third consecutive year. AMD showcased AI solutions for data centers and consumer electronics at its booth. Spencer Pan, AMD Senior Vice President, explained that they hoped to set up a booth at the CIIE to strengthen cooperation with the local Chinese industry.

Chinese Government Officials Visit ASML and Samsung Booths...

Besides the U.S., ASML, which manufactures extreme ultraviolet (EUV) lithography equipment essential for cutting-edge semiconductor production, also set up a booth at this event. Considering U.S. export restrictions to China, the booth displayed relatively lower-spec deep ultraviolet (DUV) lithography equipment, and Chinese government officials were reportedly seen visiting this booth one after another.

Chinese government officials also visited the booth set up by Samsung Electronics, where the latest consumer products were introduced and questions about the semiconductor industry related to China were asked. SCMP reported that Samsung showcased its 3-nanometer (nm; 1 nm is one billionth of a meter) gate-all-around (GAA) wafer at this event.

The bustling CIIE has been interpreted by some as indicating that despite concerns about China's economic slowdown, many companies are seeking investment opportunities.

[Image source= Xinhua News Agency]

Ambassador Burns told reporters on site, "This year, the largest number of U.S. companies ever are participating," emphasizing that "the trade volume between the U.S. and China reached a record high of $690 billion last year." He added, "The U.S. position on China is 'de-risking' (removing risks), not 'decoupling' (completely separating supply chains)," and said, "The U.S. and China do not intend to completely sever their economic ties."

"Biden and Xi Likely to Meet in San Francisco on the 15th"

This atmosphere emerged amid discussions about a summit between President Biden and President Xi. Kyodo News reported, citing an anonymous senior U.S. government official, that final preparations are underway for the two leaders to hold talks at the Asia-Pacific Economic Cooperation (APEC) event in San Francisco on the 15th.

If the bilateral summit between President Biden and President Xi takes place, it will be their first face-to-face meeting in a year since the G20 summit held in Indonesia last year. China has not announced whether President Xi will attend APEC, but the White House previously stated that a U.S.-China summit would be held on the occasion of APEC.

Bloomberg reported that President Xi is also likely to attend a dinner with U.S. business leaders scheduled next week in San Francisco. Amid Western companies' reluctance to invest in China due to the Chinese economic slowdown and U.S.-China tensions, the media said that reassuring foreign investors will be one of President Xi's main tasks during this U.S. visit.

However, it remains uncertain whether this summit will lead to substantive improvements in U.S.-China relations. Kyodo News reported that while the U.S. hopes to resume military-to-military talks to prevent accidental clashes with China, challenges such as the Taiwan issue and U.S. semiconductor export restrictions remain unresolved.

This content was produced with the assistance of AI translation services.