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New US sanctions ‘decapitate’ China’s semiconductor industry

Joe Biden’s new restrictions have had a direct impact on the Chinese semiconductor industry. | Font: AFP / Unsplash

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Change of command Donald Trump a Joe Biden marked many changes in international politics USAbut this does not mean giving up attacks on China’s tech industry.

New sanctions from USA “decapitated” the semiconductor industry China, according to experts.

Biden vs. China: new sanctions

October 7 this year Ministry of Commerce belonging USA published a new round sanctions against China.

They tend to let China without the ability to produce their own semiconductors, especially for military use, and they had an immediate effect.

USA introduced stricter rules for obtaining export licenses in China products intended for development and production, as semiconductors D supercomputers.

But the most effective measure is to limit the participation of “people from USA” in the development and production of semiconductors in Chinese companies. These people will need a special license.

“Annihilation” of semiconductors in China

“This is annihilation: Chinese semiconductor manufacturing industry dropped to zero overnight,” Jordan Schneider, a technology industry insider and analyst at Rhodium Group, said in a Twitter thread.

Schneider assured that the restrictions caused “massive resignations” of US leaders. Chinese technology companies.

For Schneider, Biden administration “decapitated” China’s semiconductor industry, and the consequences were much more serious than those caused Donald Trump.

“Point of no return” between the US and China

“Thanks to these latest actions, the gulf between the United States and China has widened to the point of no return,” analyst Abishur Prakash told the TV channel. CNBC.

USA D China They also maintain tension over Taiwan, which China seeks to unite within the framework of “two systems, one country”.

CHINA-POLICY-CONGRESS
Xi Jinping in the midst of a challenging time for China’s semiconductor development. | Font: AFP | Photographer: NOEL SELIS

In his speech at the Congress of the Communist Party, the President of the People’s Republic of China Xi Jinping condemned the intervention of “outside forces” on that island in the activities of the devolved government and warned that China “never renounce the use of force” for his reunification.

Taiwan is an independent democracy founded in 1949 by members Nationalist Party After losing the Chinese Civil War against communist party.

The island is a leader in the development and production of semiconductors with TSMSwhich also has factories in Chinaas its flagship company.

Source: RPP

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