Published March 16, 2024
Dialogues held in November 2023 between US Secretary of Commerce, Gina Raimondo, and Chinese Minister of Commerce, Wang Wentao, stirred up controversy around the US-China trade relationship and the impact of US export controls introduced by President Joe Biden in 2022. While the United States maintains that its controls are to protect national security, China argues they adversely affect normal trade, particularly in the semiconductor industry.
Discussions between the US Secretary of Commerce and the Chinese Minister of Commerce in November 2023 highlight the latest complexities in the US–China trade relationship.
Secretary Gina Raimondo clarified that US export controls aim to protect national security without hindering China’s economic development. Minister Wang Wentao criticised the controls for adversely affecting normal trade practices, especially in China’s semiconductor industry.
The introduction of strict export controls by US President Joe Biden in October 2022, updated in 2023, were designed to limit Beijing’s access to advanced technologies and constrain military advances. But the measures are likely to have secondary consequences given the dual-use applications of chip technology.
US export controls and investment restrictions in key sectors are intended to preserve technological leadership and address security concerns. Yet, these policies may also produce unintended consequences, including potentially accelerating China’s efforts to become technologically self-reliant.
China’s response to the controls has been comprehensive, aiming for technological self-sufficiency as part of its ‘dual circulation’ strategy.
This strategy seeks to lessen dependency on foreign technologies and diminish risks stemming from global supply chain disruptions. Preliminary signs indicate progress, though a full evaluation is premature.
The Chinese government’s investments in domestic research and development and its ambitions to lead in sectors like 5G and artificial intelligence indicate a shift towards homegrown innovation, partly spurred by US policies.
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SOURCE: www.eastasiaforum.org
RELATED: Two Sessions 2024: Deciphering China’s economic strategy and how it shapes global dynamics
Published March 16, 2024
THE Two Sessions, formally known as the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), are the pinnacle of China’s political landscape.
Held annually in March at the Great Hall of the People in Beijing, these gatherings are a powerful platform for shaping China’s legislative and political agenda for the year ahead.
Since the Chinese economy is the world’s second largest and plays a pivotal role in global trade, investment and financial markets, the outcomes of the Two Sessions, particularly the economic policies and targets announced, have significant implications for China and the global economy.
This year, Two Sessions provided critical insights into China’s policy direction, with substantial implications for domestic and international stakeholders.
The emphasis on economic targets, the unveiling of moderate stimulus plans and the strategic focus on key industries such as artificial intelligence and China’s ‘new quality productive forces’ indicate China’s efforts to stabilize growth while navigating complex internal and external challenges.
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SOURCE: www.manilatimes.net
RELATED: China chides United States for ‘economic bullying’
Published March 14, 2024
CHINA on Thursday criticized a US trade mission to Manila for dissuading American allies including the Philippines from working with the economic superpower on semiconductors, accusing its trade rival of “economic bullying.”
“Instead of focusing on economic cooperation with the Philippines, the US Presidential Trade and Investment Mission dwelled on so-called national security and sounded clarion calls for ganging up against China’s technological development,” the Chinese Embassy in Manila said in a statement.
The embassy said US restrictions on semiconductor exports to China is a “clear case of economic bullying.”
The Philippines is one of seven countries that the US is working with to diversify its semiconductor supply chain under the CHIPS and Science Act.
Under the law, the US will shell out $52.7 billion in subsidies to boost chip manufacturing and entice chipmakers in China to move to the US or other friendly countries.
