U.S. chip bullying: A desperate siege

Editor's note: Liu Chunsheng, a special commentator on current affairs for CGTN, is an associate professor at the Beijing-based Central University of Finance and Economics. The article reflects the author's opinion and not necessarily the views of CGTN.

On May 21, the U.S. Department of Commerce once again wielded its sanctions baton in a delusional attempt to globally ban China's advanced computing chips by placing them on a "blacklist." Chinese telecom giant Huawei's Ascend series of artificial intelligence (AI) chips have been specifically included in this measure. This absurd and hegemonic act once again exposes the ugly face of U.S. trade bullying and technological coercion.

Under the baseless pretext of "violations of U.S. export controls," Washington has wantonly launched a siege on China's high-tech industries through long-arm jurisdiction and unilateral sanctions. This behavior, in blatant disregard of international law and basic norms of international relations, is also a glancing blow to global industrial and supply chains. 

Unfortunately, U.S. trade bullying and technological coercion against China have become normalized in recent years. The underlying motives reveal a mentality of desperation and frenzy as the U.S. resorts to every means to contain China's rise. 

Bid to retain technological hegemony 

China is rising at an astonishing pace in high-tech fields such as AI and semiconductors. From Huawei's self-developed Ascend chips to breakthroughs in 5G technology applications by numerous Chinese enterprises, China's outstanding performance in high-tech has left the U.S. – long accustomed to technological dominance – restless and feeling threatened.

The U.S. knows that if China achieves full-scale transcendence in core technologies like advanced computing chips, its global technological hegemony will collapse. Therefore, it is seeking to use export controls and other measures to "chip bully" China and cut off Chinese enterprises' access to advanced technologies and equipment at the source, thinking this would strangle China's high-tech industries in their infancy.

This approach betrays the open, shared and collaborative spirit of technological development and severely undermines the healthy ecosystem of global scientific cooperation. 

Seeking leverage in economic and trade deals 

Although the U.S.-China tariff negotiations have resulted in temporary suspension of some tariffs, they have not altered the intense competitive dynamics between the two nations, nor has the U.S. relented in its bid to seek all-around suppression of China. Washington has weaponized export controls and import restrictions in negotiations, attempting to exert greater pressure on China to secure more concessions in other areas.

However, this myopic practice of politicizing economic issues not only fails to genuinely resolve trade disputes but also severely damages mutual trust. In past negotiations, the U.S. repeatedly resorted to threats of tariffs and sanctions, a crude approach that narrowed communication channels and stagnated progress, ultimately harming the interests of businesses and citizens of both countries.

Disrupting the global semiconductor industry chain 

The global semiconductor industry chain is a highly sophisticated and collaborative system, with tightly linked stages from chip design and manufacturing to packaging and testing. The U.S. attempt to exclude China's advanced computing chips from the global market is like planting a time bomb in the industry chain.

On one hand, Chinese chip enterprises face blocks on exports and wasted research and development (R&D) investments; on the other hand, global companies reliant on Chinese chips are thrown into crisis.

For example, in the Internet of Things and security monitoring sectors, Chinese chips lead the market with their high cost-effective performance. But the U.S. bans are forcing global firms in these fields to seek alternatives, thereby increasing costs and risks of supply chain disruptions. Additionally, U.S. sanctions have drastically reduced the efficiency of the global semiconductor industry, and severely impacted global chip production capacity. 

Hindering global scientific cooperation and innovation 

Technological advancement thrives in an open and collaborative environment, but the U.S. has weaponized scientific cooperation for political warfare. Sanctions on Chinese high-tech firms have put global tech companies in a dilemma: Cooperating with China risks U.S. penalties, while severing ties means missing huge markets and innovation opportunities. This uncertainty has dampened the global enthusiasm for tech collaboration and stifled innovation.

In AI, where China boasts rich data resources and large R&D teams, U.S. blockades have forced a halt to Sino-U.S. cooperation, leaving shared technical challenges unresolved and dealing a heavy blow to global AI development. 

Facing U.S. trade and technological bullying, China has demonstrated unwavering resolve and strength. The Chinese Ministry of Commerce said any organization or individual implementing or assisting in U.S. measures stands the risk of violating Chinese laws such as the Anti-Foreign Sanctions Law of the People's Republic of China.

This statement conveys China's determination to safeguard its legitimate rights and take the necessary countermeasures to strike back at U.S. bullying and protect global supply chain stability.

In recent years, China has increased R&D investments in critical fields like semiconductors, accelerating the construction of self-reliant industrial and supply chain systems. From breakthroughs in domestic chips to the promotion of homegrown operating systems, China is breaking through U.S. technological blockades with concrete actions and forging its own path of innovative development. 

The U.S. chip bullying is a blatant challenge to international order and a grave disruption of global supply chains. The bid to curb China's technological advancement through sanctions will only isolate the U.S. itself and backfire on its own chip industry and economy.

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