With rising tensions regarding technology and trade between the United States and China, the latter has sent a clear message to Washington, cautioning against restrictive measures.
In the face of growing US scrutiny over foreign investments, particularly in the tech sector, China is prepared to counteract any national security measures levied against it.
Ambassador Xie Feng, China’s diplomatic representative in Washington, voiced the country’s stance at the Aspen Security Forum.
He highlighted that China would not stand idle while the US implements sanctions and export controls that could potentially hinder the Asian giant’s access to advanced US technology, such as state-of-the-art microchips.
US and China’s unyielding stance amidst unfolding trade tensions
According to Xie, China would not provoke conflict but would not recoil from provocations either, thus assuring a decisive response. This tough rhetoric comes at a time when the US government is close to finalizing an investment screening mechanism.
This mechanism could drastically reduce US investment in Chinese companies engaged in sectors such as semiconductors, quantum computing, and artificial intelligence that could bolster China’s military prowess.
Simultaneously, the US commerce department is poised to revise broad export controls from the previous year to seal existing loopholes. This action could limit companies like Nvidia from selling AI-related semiconductors to China.
In recent months, Beijing has launched several initiatives that have been construed as pushback by the US and its allies.
For instance, in May, following an investigation into US chipmaker Micron, China imposed a ban on some local entities from purchasing the company’s semiconductors. This move was perceived as a direct response by many American officials.
Earlier this month, Beijing announced a mandate for Chinese companies exporting gallium and germanium, two essential minerals for chip manufacturing, to secure licenses. This requirement could potentially choke the supply of these crucial chip-making components.
However, Xie reiterated that China does not aspire for a tit-for-tat dynamic or a trade or technological war. He metaphorically compared the attempts to thwart China’s endeavours to secure the most sophisticated microchips to handicapping a competitor in a swimming contest.
Further diplomatic intricacies
Despite his staunch statements, Xie was reluctant to comment on Qin Gang, the former ambassador and current foreign minister, who has been absent from public view for nearly a month.
China’s foreign ministry stated Qin is ill, but without further details, which has led to rampant speculation about the top diplomat’s situation.
Addressing China’s relations with Russia amidst the Ukraine invasion, Xie maintained that it was “natural” for the two neighboring nations to uphold friendly ties.
He skillfully parried a question about Russian President Vladimir Putin’s redeeming qualities by highlighting a past remark by former President George W. Bush, who once described Putin as “straightforward and trustworthy”.
China’s stern warning illustrates the fraught state of US-China relations, particularly in the realms of trade and technology.
As both nations navigate these complex waters, the world watches with bated breath, understanding that the outcome could reshape the global tech landscape and international commerce.
