According to Nikkei Asia, the Chinese government is hard at work to attempt to circumvent US sanctions. Several sources suggest that Beijing is currently in the process of “soliciting American companies”, (including Intel and AMD), but also European, such as ASML and Infineon Technologies and Japanese. Goal : create a supply chain, beyond the reach of sanctions imposed by the White House.
China wants to create a working committee on semiconductors to circumvent US sanctions
China is therefore looking for companies ready to join the “Cross-Border Working Committee on Semiconductors”, that’s his nickname. The latter will be headed by the Chinese Ministry of Commerce and the Ministry of Industry and Information Technology. The Middle Empire has been facing sanctions imposed by the United States for several years now, as part of a trade war. Many Chinese companies are blacklisted by the United States. This status prevents them from working with American companies. A dozen more entities were added in November 2021.
UK calls for internet giants to reimburse victims of online fraud
The most emblematic example is that of Huawei. Until the end of his term, Donald Trump fought hard for the fate of the Chinese technology company. It is precisely to get out of this pattern and circumvent US sanctions, that Beijing is trying to create a special committee to work with the best tech companies in the world. Some of the companies courted by China seem ready to take the plunge. An anonymous source reportedly said that “For many semiconductor companies, China is one of the biggest growth markets in terms of sales, so they cannot ignore the demands of the Chinese government”.
Some companies would be ready to accept Beijing’s proposal
This is the reality of the market. Companies courted by the Chinese government could accept the proposal so as not to miss great opportunities. Yes, but here it is… China is not the only country to turn a blind eye to the giants of the semiconductor sector. With the shortage we are currently going through, these actors are in extremely high demand. The European Union wants to host an Intel factory on its territory and says it is ready to line up a few billion euros in subsidies. Ursula von der Leyen, President of the European Commission, has promised a law to quadruple the production of semiconductors within the Union.
If the two subjects are not contradictory, companies that decide to join China’s game will most likely alienate the United States. Beyond the American sanctions imposed by the White House, certain companies have ethical considerations. This is probably the case of Intel, which refused to source from the Xinjiang region. Where millions of Uyghur workers, a minority Muslim community in the country, are exploited and abused. At the end of 2020, one of Apple’s main suppliers was rightly accused of sourcing from these factories.