Trade War: China's Shocking Move Against The USA

The tensions between the United States and China in the semiconductor sector continue to escalate. Recently, the United States announced new sanctions aimed at restricting the export of semiconductor technologies to China. These measures aim to hinder China’s ability to acquire and produce advanced technologies necessary for its military modernization. China is reacting violently!

The United States sanctions China again!

The new American sanctions include restrictions on the export of high-bandwidth memory (HBM) chips, crucial for artificial intelligence algorithms, as well as on 24 types of semiconductor manufacturing tools and three software. Additionally, 140 Chinese companies have been added to the blacklist of entities, which further complicates trade relations with the United States.

However, Chinese semiconductor companies have stated that they anticipated these sanctions and had stockpiled necessary equipment before the new restrictions took effect. They claim that these measures will have a limited impact on their current production due to these precautions.

China’s violent response

In response to these new sanctions, China quickly retaliated by calling for a boycott of American semiconductor manufacturers such as Nvidia, Intel, and Qualcomm. Four major Chinese industrial organizations urged their members to avoid sourcing from American suppliers. This reaction aims to reduce China’s dependence on American technologies and encourage cooperation with suppliers from other countries.

Furthermore, China has also banned the export of several critical minerals to the United States, such as gallium and germanium, used in the manufacture of semiconductors and military equipment. This ban aims to disrupt American supply chains and exert economic pressure in response to American sanctions.

These developments mark a new escalation in the trade war between the two superpowers, with significant implications for the global semiconductor industry. Companies in China and the United States will have to navigate an increasingly complex and uncertain environment while seeking to secure their supply chains while complying with new regulations.