Chinese ministry says US chip law violates international trade rules, as industry calls for cooperation


Amy Chen, Technical Support Manager of TSMC China, delivers a speech at the opening of the Global Semiconductor Conference 2022 held in Nanjing, east China’s Jiangsu Province, on 18 August 2022. Photo: Courtesy of Global Semiconductor Conference 2022

China firmly opposes the US CHIPS and Science Act, which contains discriminatory clauses and seriously violates market laws and international economic and trade rules, China’s Ministry of Commerce (MOFCOM) said Thursday, the latest response Chinese official to the bad decision of the United States. – intentional move.

The U.S. law, recently signed by President Joe Biden, has sparked heated debate in the semiconductor arena, with many in the industry concerned about the bad example the law has set for semiconductor rules. level playing field for the industry, and the potential damage and disruption it will bring to the global semiconductor industry. Industry insiders called for collaboration, not confrontation on the ground.

The CHIPS and Science Act will provide huge subsidies and tax incentives to the U.S. microchip industry, which is typical differential support policy for the industry, MOFCOM spokesperson Shu Jueting said at a meeting. an online press briefing on Thursday.

Some of these clauses restrict the normal economic, trade and investment activities of relevant enterprises in China, which is grossly discriminatory and seriously violates market laws and international economic and trade rules, which will distort the global supply chain. semiconductors and disrupt international trade, Shu noted further.

The U.S. attempt to draw a “small circle” in the global semiconductor sector has sparked widespread concern among industry players, with many expressing strong opposition to the damaging act.

Responding to the US chip law, the China Semiconductor Industry Association (CSIA) issued an official statement on Wednesday evening, strongly opposing the law and noting that “these provisions clearly deviate from the common principle of fairness, openness and non-discrimination that the global semiconductor industry has forged through practice over the past few decades.”

On August 9, Biden signed into law the CHIPS and Science Act, which was passed by US lawmakers in July. While U.S. officials have pointed out that the legislation is primarily aimed at bolstering U.S. semiconductor production, the content of the law shows a clear tendency to suppress China’s chip industry, such as requiring recipients not to build certain facilities. in China and other countries to worry about.

On the sidelines of the 2022 Global Semiconductor Conference, being held in Nanjing, east China’s Jiangsu Province, from Thursday to Saturday, industry officials noted rising tensions in the field of semiconductors since the adoption of the bill and have called for more collaboration rather than confrontation for sustainable development. development, especially as the world is already suffering from geopolitical conflicts, the COVID-19 pandemic and inflation.

An industry insider who attended the event told the Global Times on condition of anonymity that “the US chip law is not just another reflection of the country’s narrow-minded, self-serving policies, but also ‘irrational’ when it comes to actual practice.

For example, a smartphone requires hundreds of chips, ranging from radio frequency and Bluetooth chips to embedded SOCs, and behind those chips is a global supply chain.

There are also issues of production and transportation costs. For example, many leading chipmakers, including Apple’s main contract supplier Foxconn and South Korea’s LG, have set up production lines in China to be close to the terminal market, officials said. industry insiders.

Christopher Millward, president and CEO of the US Information Technology Office, who was invited to deliver a video keynote at the opening event, said chip production requires a global effort.

“Products go around the world and acquire attributes at every step of the process until they are finally recognized as the result of the global supply chain of ideas,” Millward said.

China’s IC industry should continue to create cooperation opportunities with global industry, while strengthening the development of high-end ICs, said Yu Xiekang, vice president of the China Association of semiconductor industry.

“We should put more weight on chip research and development, while always insisting on openness to outside cooperation,” Yu said.

The global economy is already sluggish due to the pandemic, inflation and geopolitical conflicts, and the global industrial chain needs collaboration to achieve win-win results, while the “small circle” strategy will create instability for the chip industry chain, the “heart” of many global industries, Ma Jihua, a veteran industry analyst, told the Global Times on Thursday.


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