US claws at China's chip industry fanning flames on tech confrontation. Cartoon: Carlos Latuff

Despite US attempts to suppress the development of China's chip industry through unilateral measures, such as the Section 301 probe, to serve its own strategic interests, the development of China's chip industry will not be obstructed by the hegemonic approach of the US, which puts the global chip industrial chain in potential jeopardy.  

The Chinese Ministry of Commerce (MOFCOM) on Monday blasted the US' announcement of a so-called Section 301 investigation into the Chinese semiconductor industry, urging the US to stop the wrongdoing and vowing to firmly defend China's rights and interests.

US Trade Representative (USTR) Katherine Tai on Monday announced the initiation of an investigation regarding "China's acts, policies, and practices related to targeting of the semiconductor industry for dominance," according to a press release by the USTR office. The investigation will initially focus on China's manufacturing of legacy or mature node semiconductors, including the extent to which they are incorporated as components into downstream products.

The US move of employing the Section 301 Act to target China's semiconductor sector indicates that the US containment of China's chip development has expanded, with the fundamental goal of maintaining its absolute dominance in the technology sector, However, this approach not only contradicts the development trend in the global semiconductor industrial chain but also harms the interests of American businesses and consumers. 

Driven by rapid technological advancements and digital transformation, the global semiconductor market is experiencing sustained growth. China's semiconductor industry is also undergoing significant development.

At present, legacy semiconductors have emerged as one of the core competitive advantages for China's manufacturing sector, with their development closely intertwined with the broader advancement of Chinese manufacturing. 

While these chips may not match the performance of high-end ones, their attributes - such as low cost, high output, and mature technology - enable them to be widely used in various consumer electronics and industrial equipment, effectively meeting market demand for technology products. 

The growth of China's manufacturing sector creates a vast market and diverse application scenarios for legacy chips, while the ongoing enhancement of these chips provides essential technical support for the transformation and upgrading of China's manufacturing sector.

Meanwhile, Chinese-made legacy chips also play an indispensable role in the global industrial chain. The rapid growth of China's semiconductor industry not only addresses the immense demand of the domestic market but also provides a stable and reliable supply chain for the global semiconductor market, thereby fostering the prosperous development of the global technology sector. 

According to data released by the General Administration of Customs, China's integrated circuit exports in the first 11 months of this year surpassed 1 trillion yuan ($137 billion) for the first time in history, reflecting a year-on-year growth rate of 20.3 percent. 

In this context, if the US goes on to impose unilateral trade barriers on Chinese chips, it would undoubtedly disrupt the global industrial chain and supply chain system.

It is important to note that China is not short of means to resist the suppression. During the development of its semiconductor industry, China has demonstrated strong competitiveness, bolstered by a long-accumulated technological foundation, a vast market scale, and a continuously optimized industrial ecosystem. 

A disruption in the supply chain would create difficulties for downstream companies worldwide due to a shortage of raw materials and components. This, in turn, could result in a general rise in prices and disrupt the global economy. 

US companies are not immune either. Soaring costs and supply chain disruptions would also exacerbate inflation and supply chain crises, ultimately undermining US competitiveness in the global market.

China has the ability to counter US suppression in the semiconductor sector. Past experience indicates that China must spare no effort in supporting technological innovation in key areas while upholding a fair and non-discriminatory competitive environment. Both are crucial not only for the long-term development of China's chip sector, but also to ensuring that the development of the global chip industry chain will not be distorted by US hegemonic intentions.