China Urges Caution When Purchasing US Semiconductors, Saying They Cannot Be Trusted

Effectively a Purchase Ban... Confidence in Semiconductor Self-Reliance
"Sanctions Have Zero Effect... Will Result in US Isolation"

China's industrial sector has warned its domestic companies not to trust American-made semiconductors. This is seen as a counterattack amid the United States' additional semiconductor export restrictions against China.

According to China's state-run Global Times on the 4th, the China Internet Association, China Association of Automobile Manufacturers, China Semiconductor Industry Association, and China Communications Enterprise Association issued a statement the previous day, urging Chinese companies to exercise caution when purchasing American-made chips, stating that U.S. semiconductor products are no longer safe or reliable.

Reuters Yonhap News

The statement from these organizations came just one day after the U.S. unveiled additional semiconductor sanctions against China on the 2nd (local time), including export controls on high-bandwidth memory (HBM) used in artificial intelligence (AI) accelerators. This is effectively a purchase ban, reflecting confidence that China's semiconductor industry can become self-reliant and signaling a move to counterattack.

The Global Times described the U.S. additional sanctions as "like shoes that were expected to fall," pointing out that this long-anticipated event has finally materialized. It added, "The report containing the sanctions was mostly prepared by mid-year, and many in the industry were aware of it," and "The public release was delayed due to negotiations with U.S. allies and chip equipment companies. The negotiations took several months and the policy was revised multiple times." It also reported that industry giants have spent over $4 million on lobbying activities in the U.S.

The Global Times criticized the final report of over 200 pages as "very complex and full of loopholes," noting that "some of the more than 140 Chinese companies targeted were included simply because they did business with Huawei." The sanctions include adding 140 companies related to the modernization of the Chinese military to the export control list.

Referring to Huawei's case, which has succeeded in technological advancement despite long-standing U.S. sanctions, the report stated, "These regulations may seem threatening, but their actual effect is close to zero," and argued that "trade and cooperation with China, especially centered on semiconductors, is inevitable and a natural flow within the global supply chain." This implies that U.S. sanctions are becoming an opportunity for China's industrial development.

The Global Times pointed out, "Some individuals in the U.S. are trying to obstruct technological exchanges between China and other countries, including the U.S., which will inevitably lead to the isolation of the U.S.," and added, "The 'de-Americanization' promoted by some countries around the world, starting with the financial sector, directly reflects this trend."

Meanwhile, China announced the previous day a ban on exports to the U.S. of dual-use items for civilian and military purposes, such as gallium and germanium.

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