China says chip ban shows no one's interests

94
2
China says chip ban shows no one's interests

On August 27, a man checks a chip display at the 2020 World Semiconductor Conference in Nanjing, Jiangsu province. Demand for chips made by Chinese companies has gone up. SU YANG Foreign Ministry spokeswoman Mao Ning said on Friday that the United States business community pushing back a proposed Chinese chip ban, in the final version of an annual defense policy bill, shows how the arbitrary disruption and damage to global supply chains serves no one's interests.

The industry group said the 2023 National Defense Authorization Act's amendment banning government agencies from doing business with Chinese semiconductor manufacturers is not clearly defined in law or regulations, and was written by Jack Reed, chairman of the US Senate Committee on Armed Services, and James Inhofe, ranking member of the committee.

ALSO READ: Chip stocks hammered in Asia, dollar firms on the hawkish Fed

The amendment would impose huge compliance burdens on government contractors and grant or loan recipients, according to the coalition.

Mao said that China firmly rejects any negative content in the draft legislation, and the US should listen to domestic rational voices, stop politicizing, weaponizing, and ideologizing economic, trade, and sci-tech issues, and that the NDAA is essentially US domestic legislation.

Mao said that arbitrary disruption and damage to global industrial and supply chains would not be supported as a result of the combined forces of market rules and the choices of businesses.

She urged the US to stop blocking and hobbling Chinese companies, respect the law of the market economy and free trade rules, and defend the security and stability of global industrial and supply chains.

ALSO READ: Chip industry opposes curbs on sales to China

Mao responded to a call made by the French Chamber of Commerce and Industry in China, saying that China would minimize the impacts of COVID 19 on its economic and social development.

The Chinese government has always attached great importance to providing foreign businesses with the services they need and facilitating their operation in China, Mao said, adding that the country has taken targeted measures to help foreign businesses overcome their difficulties.

She added that China would review and update the measures in light of the latest developments and make sure that measures are science-based and targeted, while adhering to COVID 19 prevention and control efforts.