My apologies in advance if posting this news on this thread is misplaced or too political, or this news has been posted on this thread already. I don't have any expertise, technical familiarity on this subject matter, in other words am a total layman but since this particular industry/technology is very crucial to China's core objective in advancing into high economy not to mention and important and critical component to America's intention of stopping China's ability to establish/gain a firm foothold into this realm of technology in maintaining it's global rules based order a.k.a. American hegemony.
The following interview was published a couple of weeks ago and is certainly one of the more detailed and interesting pieces discussing the current US-China tech war to have been published in China in recent months. For those of you interested in this topic, I would recommend reading it in full. The lengthy excerpts below have been translated with the kind help of
who is co-authoring today’s post with me.
Lu’s main arguments:
- The scope of Washington’s tech crackdown has always been constrained by the reliance of US companies on the Chinese market. Lu recommends further weaponising Chinese demand.
- Beijing must stop pursuing individual technological targets and should come up with a comprehensive strategy aimed at developing an “independent industrial base” for semiconductors.
- Chinese companies are already present in almost every part of the semiconductor supply chain. The key for China today is to help foster strong supply and demand links between these companies.
- Beijing should set up a body similar to the Mao era’s Central Special Committee [中央专委] that would directly oversee the development of this industrial base.
- China must pursue “fully independent manufacturing” by first de-Americanising its chip supply chain and ultimately replacing almost all foreign made equipment and materials with domestically made ones. Decoupling is bad for everyone, but needs must.
- China should focus less on developing advanced chips and more on building up a domestic industrial chain capable of producing mature chips (≥28nm).
- China’s goal should be to become the world’s main supplier of mature chips and ultimately use this dominance as a weapon against the US and others (if and when necessary).
- Beijing should impose sanctions on any company that complies with the US’s export controls. For example, by banning the sale of NVIDIA’s mature chips and of ASML’s less advanced lithography equipment to China.
- Lu is adamant that China should implement strong countermeasures in response to the US’s current crackdown. Backing down will only make matters worse, he says.
Interviewer: So in order to deal with the US’s tech embargo, do you think that the key is to build up a supply chain [that depends on] internal circulation?
1. The US’s tech crackdown is constrained by the pull of China’s market
Interviewer: The US has been constantly making new moves to block and remove Chinese technology, with embargoes and bans being issued one after the other. How do you analyse this situation?