On Wednesday, Beijing accused the US of “technological terrorism” after Bloomberg reported that the US was pressuring companies not to sell key chipmaking technology to China.
The US is reportedly pressing the Netherlands-based ASML Holding NV and the Japan-based Nikon Corporation not to sell the technology to China. If successful, the move would significantly widen US sanctions on China that intend to prevent the country from becoming a major chip manufacturer.
“This is yet another example of the US’s practice of ‘coercive diplomacy’ by abusing state power and wielding technological hegemony. It is also classic technological terrorism,” Chinese Foreign Ministry spokesman Zhao Lijian told reporters.
Zhao wouldn’t say if China planned to retaliate but added that the move “would only remind other countries of the risks of technological dependence on the US and prompt them to quickly become independent and self-reliant in science and technology.”
The US push to squeeze Chinese chip manufacturing comes amid a global chip shortage. Congress is looking to pass a massive China competition bill that would include $52 billion to subsidize domestic chip production, but the legislation has stalled over partisan differences.
The US has taken unprecedented economic measures against China in recent years, including a ban on the import of goods sourced from China’s Xinjiang region, which came into effect in June.
We sure like to complain about the trade deficit, and not mention that we block the sale of a ton of stuff the Chinese are trying to buy. When they develop their own chips, what will we do then? We already tried to do this with the International Space Station, blocking all Chinese participation, and guess what? They built their own.
Here’s another area where prideful conceit seems to rule the day. China doesn’t need permission to use ASML technology. They purchase it because that’s how the game is supposed to be played. Moreover, China is making such significant investments in its own semiconductor industry that both Korea and Taiwan are worried about legitimate competition. One small example is the decision of Geely Automotive to get into the 7 nanometer chip business before the end of the year, US auto-makers could potentially be on the 𝒓𝒆𝒄𝒆𝒊𝒗𝒊𝒏𝒈 end of this kind of abuse within a couple of years.
(Geely owns Volvo, and manufactured 2.2 million cars last year, most of which were sold in China)