KYNIX：China Speaks Out on US Chip Export Controls

International Electronics Business Intelligence In response to the United States last week announced two new export control regulations on the grounds of maintaining national security, the China Semiconductor Industry Association issued a statement Thursday, hoping that the United States will promptly correct the wrong…

Kynix pointed out that on October 7, 2022, the U.S. Department of Commerce announced two new export control regulations on the grounds of maintaining national security. The CSIA opposes the U.S. Department of Commerce’s use of such an arbitrary approach to bring disruption to international trade. We hope that the U.S. government will promptly correct its wrongdoing and return to the framework of the WSC and the GAMS international trade consultation mechanism to be able to fully communicate and effectively exchange views and seek to reach a consensus.

According to new export controls announced by the U.S. Department of Commerce on Friday, semiconductors produced using U.S. technology for artificial intelligence, high-performance computing and supercomputers can only be sold to China under an export license, which will be very difficult to obtain.

In addition, Washington prohibits U.S. citizens or entities from working with Chinese chip makers unless they receive special approval. Currently, SK Hynix, Samsung Electronics, and Intel have been confirmed one after another to be exempted from U.S. technology export restrictions to China for one year.

In addition, the new rules emphasize that foreign governments that prevent BIS from making compliance decisions will be placed on a list of entities that could affect their companies access to U.S. technology. The program also severely restricts the export of chip manufacturing tools and technology to China.

For the U.S. side this time, the Chinese Foreign Ministry spokesman pointed out at the regular press conference of the Foreign Ministry on October 8 that the U.S., out of the need to maintain scientific and technological hegemony, abused export control measures to maliciously block and suppress Chinese enterprises, a practice that deviates from the principle of fair competition and violates international economic and trade rules, which not only harms the legitimate rights and interests of Chinese enterprises but also will affect the rights and interests of U.S. enterprises.

Mao Ning said that such practices impede international scientific and technological exchanges and economic and trade cooperation, and will have an impact on the stability of the global industrial chain supply chain and the recovery of the world economy. The U.S. side will politicize, instrumentalize and weaponize science and technology and economic and trade issues will not stop China’s development, but will only blockade itself and backfire on itself.