Meanwhile, in China
Meanwhile, in Beijing… no coup, no wars, no sanctions, no hysteria. Nepal’s leader Oli visiting China. Just Xi Jinping doing his usual Xiplomacy magic with trade, infrastructure, investment, tourism and other win-win proposals.
The US slammed down more export controls on the Chinese semiconductor industry affecting more than 140 Chinese entities that are now added to the export control entity list, and expanding long-arm jurisdiction by interfering in trade between China and third countries.
What is in full swing, is the trade war. When Trump declared a trade war against China in his first administration, the Chinese comment was a laconic: “It is easy to start a trade war. It is not easy to win a trade war.”
China’s Ministry of Foreign Affairs spokesperson Lin Jian said at a regular press briefing on Monday that China firmly opposes the US’ overstretching the concept of national security, abusing export controls, and maliciously blocking and suppressing China. This type of behavior seriously violates the laws of market economy and the principle of fair competition, disrupts international economic and trade order, destabilizes global industrial and supply chains, and will eventually harm the interests of all countries, Lin said.
China acted quickly and banned exports of many critical products to the US — such as gallium, germanium, antimony, some forms of graphite and more. China produces 98% of the world’s supply of gallium and 60% of the world’s supply of germanium. Gallium is a key material in the manufacture of advanced semiconductors. Germanium is widely used in optical fiber communication and solar cells. Antimony can be used to make semiconductor devices such as strong magnetic components. Superhard materials play an important role in the cutting, grinding and polishing processes in chip manufacturing.
This image represents the use of galium only.
Global Times states: “This is a blatantly arbitrary measure. Among the over 140 Chinese companies listed, some are included merely for having business dealings with Huawei, while others are deemed as “posing a risk to US national security,” for participating in the acquisition of US high-tech companies.
The US has used this measure to greatly expand its power, affecting many countries and regions, including Japan, the Netherlands, Israel, Malaysia, Singapore, South Korea, and China’s Taiwan region. This will severely disrupt the stability of the global industrial and supply chains and undermine the international economic and trade order.
It’s equivalent to the US falling ill while forcing the rest of the world to “take the medicine”.
On December 3, the Internet Society of China, the China Association of Automobile Manufacturers, the China Semiconductor Industry Association, and the China Association of Communications Enterprises issued statements declaring that US chip products are no longer safe and reliable, calling on domestic companies to exercise caution when purchasing US chips. Chinese media followed suit with op eds, stating that US chip products are not longer safe and reliable.
The double whammy here is that some materials are classified dual- use. Dual-use items refer to goods, technologies and services that may be used either for civilian purposes or for military purposes or to contribute to an increase in military potential, especially to design, develop, produce or use weapons of mass destruction and their means of delivery.
The US is still operating under its own false premise that the world trembles when they bark. That time is fast becoming observable history.