TMTPOST -- Four Chinese industry bodies call for cautious purchase of U.S.-made chips as the Biden administration hit China’s semiconductor industry with new export controls.

Credit：Xinhua News Agency

The China Semiconductor Industry Association (CSIA), the China Association of Automobile Manufacturers (CAAM), the Internet Society of China (ISC) and the China Association of Communication Enterprises (CACE) on Tuesday released statements respectively, voicing their firm opposition to the U.S. abuse of export control measures.

Chinese industries have to turn more cautious on procurement of chips from the U.S. as the country’s arbitrary control measures against China have caused disruptions in the supply chain and increased operating costs for American companies, affecting the stable supply of U.S. chips and making them no longer secure and reliable, the CSIA said.

The CAAM said it suggested Chinese automakers exercise caution when procuring the U.S. chips to ensure the stability of automobile industry chains and supply chain, citing the same concern that impacts stable supply of chips made from the United States. It added that the trust and confidence in procuring chip products from American companies are being shaken in the Chinese automotive industry.

The CAAM said it welcomes global chip companies to strengthen their collaboration with Chinese automotive and chip enterprises in various aspects, invest in China, engage in joint research and development, and share development opportunities.

To make sure the safe, stable and sustainable development of China's Internet industry, the ISC called on domestic companies to take proactive measures, prudently choose to purchase American chips, seek to expand cooperation with chip companies in countries and regions outside the U.S., and actively use chips made in China by domestic and foreign companies.

The CACE urged the government to conduct investigations into the security of the supply chain for critical information infrastructure and to implement robust measures to ensure the secure and stable operation of such infrastructure.

A day prior to these industry associations calling, the U.S Department of Commerce’s Bureau of Industry and Security (BIS) unveiled a package of rules designed to further impair China’s capability to produce advanced-node semiconductors that can be used in the next generation of advanced weapon systems and in artificial intelligence (AI) and advanced computing.

The rules include new controls on 24 types of semiconductor manufacturing equipment and 3 types of software tools for developing or producing semiconductors; new controls on high-bandwidth memory (HBM); new red flag guidance to address compliance and diversion concerns; 140 Entity List additions and 14 modifications spanning Chinese tool manufacturers, semiconductor fabs, and investment companies involved in advancing the Chinese government’s military modernization; and several critical regulatory changes to enhance the effectiveness of the previous controls, according to a press of the BIS.

China firmly opposes the United States' latest control measures on semiconductor export, a spokesperson with the China’s Ministry of Commerce (MOFCOM) responded a question about the U.S. government’s new annoucement of export control, according to a statement of the ministry on Monday. The spokesperson slammed the move as a typical economic coercion and non-market practice. The spokesperson warned China will take necessary measures to resolutely safeguard its legitimate rights and interests.

China has lodged solemn representations with the United States over its latest control measures on semiconductor export and sanctions on Chinese companies, Lin Jian, a foreign ministry spokesperson said on Tuesday.

Lin reiterate that China firmly opposes the US’s overstretching the concept of national security, abusing export controls, and wantonly imposing illegal unilateral sanctions and “long-arm jurisdiction” over Chinese companies. 

The Chinese side has urged the United States to respect the laws of market economy and the principle of fair competition, according to the spokesperson. “We will do what is necessary to firmly safeguard our security and development interests，”Lin said.