Major Chinese Trade Groups Push Back Against U.S. Chip Controls
Official Readouts from Different Departments & Associations' Responses to U.S. Semiconductor Controls
Following Washington's Dec.2 announcement of expanded semiconductor export controls targeting China's chip industry, various Chinese departments responded. The reaction extends far beyond traditional foreign affairs and commerce departments. For now, four industry associations have also responded, including the Internet Society of China, the Semiconductor Industry Association, the China Association of Automobile Manufacturers, and the China Association of Communications Enterprises.
Below are translated official statements from Chinese government departments and industry associations regarding U.S. semiconductor export controls.
China has lodged serious representations regarding the U.S.'s latest update to semiconductor export control rules, sanctions on Chinese companies, and malicious suppression of China's technological advancement.
Lin Jian stated that China has consistently and firmly opposed the U.S.'s practice of overly broadening the concept of national security, abusing export control measures, and imposing illegal unilateral sanctions and "long-arm jurisdiction" on Chinese companies. These actions seriously undermine the international economic and trade order, disrupt global supply chain stability, and harm the interests of all countries. China urges the U.S. to respect market economy principles and fair competition rules, and will take necessary measures to firmly protect its own security and development interests.
China notes that the U.S. issued semiconductor export control measures on December 2. These measures further tighten export controls on items such as semiconductor manufacturing equipment and memory chips, add 136 Chinese entities to the export control entity list, and expand long-arm jurisdiction, interfering with trade between China and third countries. This is a typical act of economic coercion and non-market practice. The U.S. says one thing and does another, continuously broadening the concept of national security, abusing export control measures, and implementing unilateral bullying actions. China firmly opposes this.
The semiconductor industry is highly globalized. The U.S.'s abuse of control measures seriously hinders normal economic and trade exchanges between countries, severely undermines market rules and international economic and trade order, and seriously threatens the stability of global industrial and supply chains. The global semiconductor industry, including U.S. companies, has been severely affected. China will take necessary measures to firmly protect its legitimate rights and interests.
The Ministry of Commerce also announced new export controls on gallium, germanium, and antimony as a response to the US chip restrictions.
In accordance with the Export Control Law of the People's Republic of China and other relevant laws and regulations, to safeguard national security and interests and fulfill international obligations including non-proliferation, it has been decided to strengthen export controls on relevant dual-use items to the United States. The relevant matters are announced as follows:
Export of dual-use items to U.S. military users or for military purposes is prohibited.
In principle, export licenses will not be granted for dual-use items related to gallium, germanium, antimony, and superhard materials to the United States; for graphite dual-use items exported to the United States, stricter end-user and end-use reviews will be implemented.
Organizations and individuals from any country or region who violate the above provisions by transferring or providing relevant dual-use items originating from the People's Republic of China to U.S. organizations and individuals will be held legally accountable according to law.
This announcement takes effect from the date of its publication.
Recently, the United States, using national security as a pretext, has further increased semiconductor export restrictions on China. The U.S.'s frequent adjustments to control rules, continuous escalation of trade barriers, and disregard for international trade rules have caused substantial damage to the healthy and stable development of China's internet industry. Our association firmly opposes these actions. The U.S.'s practice of overly broadening the concept of national security and abusing export control measures to unreasonably block and suppress China has shaken the industry's trust and confidence in U.S. chip products.
To ensure the safe, stable, and sustainable development of China's internet industry, our association calls on domestic companies to proactively take countermeasures, exercise caution in purchasing U.S. chips, seek expanded cooperation with chip companies from other countries and regions, and actively use chips manufactured in China by both domestic and foreign-invested companies.
Although the U.S. disregards the stability and security of global supply chains, China should maintain its commitment to expanding autonomous opening-up. While ensuring security, China will continue to firmly establish and maintain win-win cooperative relationships with global partners and promote global economic prosperity. During this crucial period of the information technology revolution, China should work hand in hand with the global community to scale new technological heights and jointly build a better digital future.
Semiconductor Industry Association: U.S. chips no longer secure or reliable
On December 2, the U.S. government announced a new round of export restrictions on China, adding over 140 Chinese companies to the trade restriction list, affecting multiple categories of semiconductor products, including semiconductor manufacturing equipment and electronic design automation tools. The U.S. action once again undermines the fair, reasonable, and non-discriminatory consensus long established in the global semiconductor industry and the principles of fair trade under the WTO. It violates the spirit of the World Semiconductor Council (WSC) charter that global semiconductor companies jointly follow and damages the collaborative efforts of global semiconductor industry practitioners. The arbitrary modification of trade rules by the U.S. government has already caused substantial damage to the security and stability of the global semiconductor supply chain. The China Semiconductor Industry Association (CSIA) expresses serious concern and firm opposition to this.
In today's globally integrated economy, U.S. unilateral actions not only harm the interests of both Chinese and American companies but also significantly increase costs across the global semiconductor supply chain. As U.S. export control measures continue to escalate, their boomerang effect continues to expand. The arbitrariness of U.S. controls on China has impacted U.S. companies through supply chain disruptions and increased operational costs. This affects the stable supply of U.S. chip products, making them no longer secure or reliable, forcing Chinese-related industries to exercise caution in purchasing U.S. chips.
China's semiconductor industry development is rooted in and has grown through globalization. We will continue to uphold open cooperation and actively deepen collaboration with upstream and downstream semiconductor companies from all countries to promote global industry prosperity. We strongly urge the U.S. government to respect industry consensus, return to the spirit of the WSC charter, protect the common interests of the global semiconductor industry, and shoulder the responsibilities befitting a major power. CSIA will maintain the fair principles and industry consensus formed by the WSC and resolutely defend the interests of Chinese semiconductor companies and global supply chain partners. We call on companies from relevant countries and regions to strive to become reliable semiconductor product suppliers, and also call on the Chinese government to support the stable development of reliable semiconductor product suppliers.
China Association of Automobile Manufacturers:
Recommends Chinese automotive companies exercise caution when purchasing U.S. chips to ensure the security and stability of the automotive industry and supply chains
On December 2, 2024, the U.S. Department of Commerce, citing national security concerns, announced new export control regulations, adding 140 Chinese companies to the Entity List and expanding export controls on semiconductor products including semiconductor equipment and high-bandwidth memory chips.
The China Association of Automobile Manufacturers firmly opposes the U.S. government's practice of overly broadening the concept of national security and abusing export control measures to maliciously block and suppress China. Such behavior seriously violates market economy principles and fair competition rules, undermines international trade order, disrupts global supply chain stability, and ultimately harms the interests of all countries.
The U.S. government's arbitrary modification of control rules has seriously affected the stable supply of U.S. chip products, shaking the Chinese automotive industry's trust and confidence in purchasing chips from U.S. companies. U.S. automotive chips are no longer reliable or secure. To ensure the security and stability of automotive industry and supply chains, the association recommends Chinese automotive companies exercise caution when purchasing U.S. chips.
The automotive industry is highly globalized, and China's automotive sector remains deeply rooted in global development. China's automotive industry is in a rapid development phase, particularly with the high-speed growth of new energy vehicles serving as a crucial driving force for global green and low-carbon transformation. This also provides broad market opportunities for the global automotive supply chain. We welcome global chip companies to strengthen cooperation with Chinese automotive and chip enterprises, invest in China, conduct joint research and development, and share development opportunities.
China Association of Communication Enterprises:
US chip products are no longer reliable and secure, calling the government to conduct security investigations into the supply chain of critical information infrastructure. (Suggesting next move?)
Recently, the U.S. imposed new export restrictions on China, adding 140 Chinese semiconductor companies to the trade restriction list, prohibiting most U.S. suppliers from shipping to these companies. The China Communications Industry Association (CCIA) firmly opposes these U.S. actions.
Our association believes that the U.S., under the pretext of national security, is abusing state power to suppress Chinese companies. This is blatant economic and technological bullying, an outright denial of the market economy principles that the U.S. consistently promotes, and harms the legitimate rights of China's ICT industry and global consumers, including U.S. users. The U.S. should stop the misguided practice of overly broadening the concept of national security and politicizing economic issues, and create a fair, just, and non-discriminatory environment for enterprises from all countries.
The U.S. government's continued broadening of national security concepts and arbitrary modification of control rules to restrict chip and semiconductor equipment supply to China has seriously violated international trade rules and caused substantial damage to the security and stability of China's ICT industry supply chain. China's ICT industry's trust and confidence in purchasing U.S. chip products has been shaken, viewing U.S. chip products as no longer reliable or secure. The industry calls for the government to conduct supply chain security investigations of critical information infrastructure and take favorable measures to ensure its safe and stable operation.
The arbitrariness of U.S. control measures against China has affected the stable supply of U.S. chip products. To ensure the security and stability of the ICT industry supply chain, caution should be exercised when purchasing U.S. chips. Related companies should expand cooperation with chip companies from other countries and regions, and treat products manufactured in China by both domestic and foreign-invested companies equally.
China adheres to the concept that technological achievements should benefit all humanity. We will further expand high-level opening up of high-tech industries, including the integrated circuit industry, actively facilitate global knowledge and technology flow, accelerate digital and intelligent development, and continue to deepen mutually beneficial cooperation with all parties while ensuring security. This will expand market space for ICT technology and product applications, achieve positive interaction between high-quality development and high-level security, thereby promoting global industrial prosperity.
The China Communications Industry Association, as a social organization representing China's ICT industry interests, expresses strong dissatisfaction with U.S. actions and will firmly defend the legitimate rights and interests of Chinese ICT enterprises.