The U.S. Department of Commerce issued the ban on Oct. 7, which put in place new export restrictions on advanced semiconductors and chip-manufacturing equipment bound for mainland China. The new rules sought to prevent the Chinese Communist Party (CCP) from getting their hands on American technology and subsequently using it for their own military development.
Economics professor Chiou Jiunn-rong of Taiwan's National Central University said the move is "very likely to form a trend" that will affect other fields. "Previously, capital was leaving China – and the next trend is technology professionals leaving China," he noted.
Another economics professor, Tamkang University's Tsai Ming-fang, said the U.S. and China decoupling is "more clear and certain" thanks to the ban. He also predicted that "Taiwan factories will no longer help Chinese manufacturers, but will help more brands in democratic countries."
Meanwhile, York University professor Shen Rongqin remarked that the Biden administration has attached great importance to technological sanctions of China from the very beginning.
"Starting from the Trump administration, now [President Joe] Biden has accelerated the trend of decoupling between China and the U.S. in semiconductor technology," he said. Shen continued that Biden's actions were more radical and comprehensive than many Republican lawmakers have suggested.
"The U.S.-China decoupling is really happening," said Li Linyi, a U.S.-based current affairs commentator.
"These measures are likely to be just the beginning for the U.S. government. If these measures are extended to other fields such as finance, biotechnology, etc., it will really become a headache for the CCP."
While U.S. export controls to China over the years have only been on technologies, products, companies or organizations, the Oct. 7 edict by the Commerce Department extends to individual citizens and green card holders. (Related: Russia 2nd wave attack on Ukraine now appears imminent; Biden wages ECONOMIC war against China’s semiconductor industry.)
Radio Free Asia reported that on Oct. 12 – the day the ban took effect – hundreds of Chinese-Americans working in semiconductor companies resigned from Yangtze Memory Technologies, Changxin Memory Technologies, Shanghai IC R&D Center Jiading Factory, Hefei Changxin Memory Technologies and others..
Starting from that date, American citizens will be prohibited from supporting either the development or production of integrated circuits at certain unlicensed chip companies in the communist nation. Moreover, Chinese companies included in the Commerce Department's "entity list" would be banned from obtaining certain advanced chips for their supercomputers beginning Oct. 21.
Beijing officials quickly went on the defensive following the Commerce Department's announcement.
Mao Ning, spokeswoman for the Chinese Ministry of Foreign Affairs, blasted the measures. "Out of the need to maintain its [science and technology] hegemony, the U.S. abuses export control measures to maliciously block and suppress Chinese companies," she said.
"It will not only damage the legitimate rights and interests of Chinese companies, but also affect American companies' interests. By politicizing tech and trade issues and using them as a tool and weapon, the U.S. cannot hold back China's development – but will only hurt and isolate itself when its action backfires."
Meanwhile, a spokesperson for the Chinese Ministry of Commerce said Beijing strongly opposed the U.S. export ban. They added that such a move would seriously hinder the normal economic and trade exchanges between Chinese and American firms. Moreover, the spokesperson said the ban would seriously undermine both market rules and the international economic and trade order.
Head over to CommunistChina.news for more stories about America's semiconductor export ban.
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