China needs to use more its anti-monopoly authorities to cut these US companies down. They are way too passive about it. These companies continue abusing their position all the time. And they hide behind US government authorities. China should not just let them do as they please.
Yes, that is one option they have.
China doesn't have to "ban" Apple or other US companies to retaliate. Let's say Apple makes $40 billion a year by operating in China compared to what it would make if it didn't operate in China. China then fines Apple $10 billion. Apple has the choice to either pull out of China, or pay the fine. What is it going to choose? If it pays the fine, then it still makes $30 billion a year more than it would if it pulled out. Everything is about calibration.
Here is a recent
on the Chinese semiconductor industry. Some key takeaways:
- Huawei's domestic ecosystem is spending about $55 billion in investment total to build a domestic supply chain. That is comparable to the TSMC + Samsung spends on new plants in the US.
- SMIC has "non-A" production lines devoid of US equipment that can churn out chips at a 40nm node level. However, these "non-A" lines still rely on Dutch and Japanese help.
- The top Chinese chipmaking equipment suppliers saw their revenue increase by 121% from 2019 to 2021, outpacing their Western peers. However, the article doesn't mention by how much they outpaced them, and there is no mention of China's lithography suppliers in the article.
- The Biden administration is using civil-military fusion as justification for the sanctions, however, the fact that most military applications use lower level nodes wasn't mentioned in the article.