Image credit - Brookings Institution
During a recent phone conversation with the U.S., Chinese Commerce Minister Wang Wentao voiced significant apprehensions regarding the restrictions imposed by the U.S. on chip-making lithography machines and the ongoing investigation into American semiconductor supply chains.
The conversation underscored the importance of communication to create favourable conditions for enterprise cooperation, echoing the “clear direction” set by the meeting between President Xi Jinping and President Joe Biden in November. However, tensions persist between the world’s two largest economies, with differences on several fronts.
Wang Wentao specifically highlighted concerns over U.S. sanctions, especially restrictions on third-party exports of lithography machines crucial for chip manufacturing. This adds to the broader trade-related issues that have been a point of contention in U.S.-China relations.
Furthermore, China expressed unease regarding the investigation by the U.S. Department of Commerce into U.S. companies’ procurement of legacy semiconductors. While not cutting-edge, these semiconductors remain essential for various industries. The concerns raised by China suggest a delicate balance between technological cooperation and potential national security considerations.
The call facilitated an “in-depth and pragmatic communication” on economic and trade issues, with a focus on “national security boundary issues in the economic and trade areas,” according to a statement from the Chinese Ministry of Commerce.
As both nations grapple with the complexities of their economic interdependence, discussions on semiconductor technology access and supply chain investigations have become pivotal. The ongoing dialogues will likely shape the future trajectory of U.S.-China trade relations, especially in the technology sector, where both countries hold significant stakes.
In conclusion, while efforts are made to address concerns and create a conducive environment for cooperation, the intricate web of economic, technological, and security considerations continues to influence the dynamics between China and the United States.