Chinese Official Rejects U.S. Measures on Semiconductor Technology, Highlights Trade Tensions

A high-ranking Chinese official informed the U.S. Secretary of Commerce, Gina Raimondo, of China’s rejection of American measures aimed at limiting China’s ability to acquire advanced semiconductor technology. This issue is one of the points of contention between the two countries, according to a report from the German news agency.

The Chinese Ministry of Commerce stated in a press release that Minister Wang Wentao expressed “deep concern” about the U.S. actions during a communication with his American counterpart regarding Washington’s pressure on the Dutch company ASML Holding to halt the delivery of some equipment for manufacturing electronic chips to China.

The report, citing Bloomberg news agency, indicated that the U.S. Department of Commerce is responsible for enforcing export restrictions to any country. Earlier, ASML Holding canceled a deal to sell some of its equipment to China in response to a request from the administration of U.S. President Joe Biden, just weeks before the implementation of a ban on exporting advanced semiconductor manufacturing equipment to China.

The Dutch company had previously obtained a license to sell three of its latest electronic chip manufacturing machines to Chinese companies before the Dutch government’s decision to ban the export of such equipment to China, which came into effect in January.

Wang highlighted Chinese concerns regarding U.S. restrictions on exporting third-party lithography printing machines to China, investigations into advanced chip supply chains, as well as U.S. sanctions against Chinese companies and the suppression of such companies.

The two sides also discussed the boundaries of national security in economic and trade areas between China and the United States. According to Bloomberg, U.S. officials are considering imposing tariffs on low-priced Chinese chips.

In August of the previous year, U.S. President Joe Biden signed an executive order prohibiting some new U.S. investments in China in sensitive technologies such as computer chips. The order also requires government notification for investments in other technological sectors. China and the U.S. have accused each other of using technology and trade issues as weapons against each other.