chip Photo:VCG

The China Semiconductor Industry Association (CSIA) on Wednesday strongly protested reported chip export restrictions on China, warning about serious harm to the domestic and world economies, and calling for a global effort to unite and maintain the stability of supply chains.

In January, some foreign media reported that the governments of the US, the Netherlands and Japan have reached an agreement to impose new export controls and restrictions on chip manufacturing in China. 

Chinese observers told the Global Times that the reported deal and more potential containment won't beat down China, as Chinese semiconductor firms are making all efforts to achieve breakthroughs in core technologies for self-reliance.

"If the move becomes reality, it will cause serious harm to the semiconductor industry in China, with detriment to the global economy, as well as long-term damages to the interests of consumers worldwide," the CSIA said in a statement.

The CSIA said it protests against the act of destroying the global semiconductor industry ecosystem, and it opposes the acts of interfering in global trade liberalization and distorting the balance of supply and demand. 

It also objects to the attempt to exclude China's semiconductor industry from the global innovation system and free competition market.

The association calls on the Chinese government and relevant agencies to "establish rules for maintaining the healthy development of the global semiconductor industry." 

For foreign enterprises that defend the concept of globalization and the value of the global semiconductor industry, the CSIA said it hopes to support their business operations in the Chinese market, read the statement.

"We call on all member companies to unite and maintain the stability of global supply chains. At this particular juncture, we need to gather our confidence, respond positively and create a better future together," said the statement.

Highlighting that China's semiconductor market can create great economic value and promote global scientific and technological progress, the CSIA calls on the global semiconductor industry and academia to unite, defend the globalization of the semiconductor industry, promote collaborative innovation, and continue to create benefits for industry and human society, read the statement.

China is one of the world's most vibrant markets, with many segments such as 5G networks, smart phone sales as well as mobile internet. As a result, many foreign firms in the chip sector couldn't afford to lose the massive Chinese market, Fu Liang, an independent tech analyst, told the Global Times.

"The impact would be destructive for some foreign chip firms," Fu said, noting that China is accelerating the domestic replacement of core components and its technological capability is also improving quickly.

Semiconductors are at the core of the global digital infrastructure, which sets the foundation for many people's livelihoods. The semiconductor industry is a global one, and it's highly dependent on innovation and cooperation. Inappropriate intervention by governments and authorities can cause disruption to the industry, the CSIA said.

The association noted that cooperation and collaboration have long been the best options to create value and promote progress, and the semiconductor industry prospering today depends on the global market and collaborative innovation. 

China's Foreign Ministry said on February 10 that the US' move to expand semiconductor export ban on China to companies of Japan, the Netherlands is a typical example of "long-arm jurisdiction."

The US has seriously harmed the principle of sovereign equality of states, infringed multilateral international order which UN is at the core, distorted normal global trade and hurt the interests of companies in individual countries, said the ministry.

Global Times