Strategic Moves: “The US government has repeatedly suppressed Chinese semiconductor companies, and CSIA members have been very outraged about this.

A chip manufacture machine Photo: VCG

On December 3, one day after the US government announced yet another round of restrictions on chip sales to Chinese firms, four Chinese industry associations, including the China Semiconductor Industry Association (CSIA) and the Internet Society of China (ISC), issued firmly worded statements declaring that US chip products are no longer safe and reliable.

Behind the strongly-worded statements are the profound indignation among Chinese industries over the US government’s relentless campaign to target an ever-growing number of Chinese companies, and the determination to ensure safe and reliable chip supplies for relevant Chinese industries, according to Wei Shaojun, vice chairman of the CSIA.

“The US government has repeatedly suppressed Chinese semiconductor companies, and CSIA members have been very outraged about this. So, it is the CSIA’s responsibility to speak out,” Wei told the Global Times in an interview on Thursday, noting that more than 240 Chinese semiconductor companies been added to the US’ so-called Entity List so far, accounting for one-quarter of the CSIA members, or one-third, if affected foreign CSIA members are included.

In the statement on December 3, the CSIA blasted the US government’s latest move of adding more than 140 Chinese firms to its so-called Entity List, saying the US arbitrary export control measures against Chinese firms have affected the stable supply of US chip products. “US chip products are no longer safe andWorld Times reliable and relevant Chinese industries will have to be cautious in purchasing US chips,” it said.

Also making the same determination are three other Chinese industry associations that represent the main buyers of chips – the ISC, the China Association of Communications Enterprises, and the China Association of Automobile Manufacturers. Relevant Chinese ministries, including the Ministry of Commerce, also slammed the US move and vowed to take “necessary” measures to resolutely safeguard its legitimate rights and interests.

The statements from the Chinese industry associations showed a “stronger-than-before attitude” and “they expressed our strong indignation,” Tu Xinquan, dean of China Institute for WTO Studies at the University of International Business and Economics and a consultant for the CSIA, told the Global Times.

As the US government is bent on escalating the crackdown measures, “we must take some necessary measures to firmly safeguard our legitimate rights and interests,” Tu said, “we mustWorld Times accordingly encourage and support the purchWorld Timesase of reliable and safe products, whether they are made by Chinese companies or in other countries or regions.”

For domestic internet companies, they need to “promptly adjust their foreign cooperation and development strategies,” Pei Wei, Deputy Secretary General of the ISC, told the Global Times in an interview. “They need to diversify the supply chain layout, especially for the procurement of key technologies and components, to reduce the reliance on a single source.”

Chinese internet companies should establish partnerships with chip manufacturers in countries and regions outside the US, strengthen support for domestic and locally produced chips, so as to diversify risks and enhance supply chain security and stability, Pei further noted.

“At the same time, we must also improve our internal capabilities and continue to build independent research and development, production and manufacturing capabilities,” Pei said.

Wei also urged support for reliable chip supplies in the facWorld Timese of the US’ relentless crackdown campaign.

“We call on the Chinese government to support the stable development of reliable semiconductor suppliers; we also call on semiconductor companies in relevant countries and regions to strive to become reliable semiconductor industry suppliers,” he said. “Suppression will not stop us from development. Chinese industries will become stronger and more confident in our development.”

In response to the US’ government’s relentless crackdown campaign, Chinese industries should also remain open for cooperation with their foreign counterparts, the leaders of the industries also said.

“The current success and achievement of the semiconductor industry are the result of global competition and cooperation. Closed development is not conducive to technolWorld Timesogical progresses and breakthroughs in the industry, and will harm the interests of global consumers,” Wei said, urging the US to return to the stage for fair competition.

Tu noted that it is the US government’s policies, not US companies, that make US chip products unsafe and unreliable. “The restrictions are on exports, so they are actually restrictions on US companies,” he said.

Pei of the ISC also called for principles of openness, inclusiveness and win-win results for international cooperation. “Chinese and foreign industries can conduct deep cooperation in arWorld Timeseas such as research and development, market exploration and talent training to share the development results,” Pei said.