Monday, October 31, 2022

U.S. Launches A Full-Blown Economic War On China, It Will Backfire

The US thinks it can block microchip technology from China. It won't and blowbacks are everywhere...



Turning the Screws 

  • Financial Times: How the US chip export controls have turned the screws on China

  • The Conversation: Clampdown on chip exports is the most consequential US move against China yet

  • The Atlantic: Why Biden’s Block on Chips to China Is a Big Deal



    How Companies Are Dealing with US Restrictions on Chip Exports to China

    Please consider How Companies Are Dealing with US Restrictions on Chip Exports to China

    The U.S. Commerce Department announced a series of new trade restrictions earlier this month that banned the export of some computer processing chips to China.

    The restrictions affect not only U.S. businesses selling to China, but also any company whose products contain American chip technology. The U.S. government action has many companies considering how to move forward under the new rules.

    Numerous American technology companies doing major business with China are facing possible severe damage to their profits. Other companies that manufacture technology products in China are having to withdraw U.S. employees because the ban also bars "U.S. persons" from supporting technology covered by the ban.

    James Lewis is a senior vice president and director of the Strategic Technologies Program at the Center for Strategic and International Studies in Washington D.C. He told VOA the new restrictions seem to be "reshaping the market."

    "The Koreans, the Taiwanese and some American companies are really nervous about it,” Lewis said. “I mean, everyone's asking, 'What can I still sell to China?' And in some cases, the answer is 'nothing,'" he added.

    In Britain’s Financial Times newspaper, U.S. national editor and columnist Edward Luce wrote that "Joe Biden this month launched a full-blown economic war on China."

    So far, chip companies have reacted carefully to the ban. While recognizing the government's concerns, they have noted they were not given a chance to discuss the policy with U.S. officials before it was announced.


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