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America's chip export restrictions to China - How can China overcome this obstacle? Koon Yew Yin
Koon Yew Yin
Publish date: Mon, 17 Oct 2022, 04:10 PM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
USA is afraid China will overtake them and have been depressing China in many ways. When Donald Trump was the President he raised import tax for all products made by China. This increased import tax can only hurt themselves because most of the products sold in the American shopping malls are made by China. American consumers would have to pay higher prices.
A few days ago, U.S. Department of Commerce introduced sweeping rules aimed at cutting China off from obtaining or manufacturing key chips and components for supercomputers. Washington’s export rules could touch other parts of the supply chain that use American technology, highlighting the wide-ranging nature of the latest restrictions.
China’s ambitions to boost its domestic chip industry has likely become more difficult and costly after the U.S. launched some of its most wide-ranging export controls related to technology against Beijing.
The U.S. Department of Commerce introduced sweeping rules aimed at cutting China off from obtaining or manufacturing key chips and components for supercomputers, in what is seen as a huge escalation in tensions between Beijing and Washington in the technology sphere.
America argues that such advanced semiconductors can be used by China for advanced military capabilities.
Here are some of the highlights of the new U.S. rules:
- Companies require licenses to export high-performance chips, usually designed for artificial intelligence applications, to China.
- Even foreign-made chips related to AI and supercomputing, that use American tools and software in the design and manufacturing process, will require a license to be exported to China.
- U.S. companies will be heavily restricted in exporting machinery to Chinese companies that are manufacturing chips of a certain sophistication.
The US imposed chips export restriction to China cannot be effective because US is relatively a small manufacturer.
I just Googled “How many per cent of computer chips are made in USA” I got this answer Twelve percent of chips are made in the U.S. The majority of the more sophisticated chips are made in other countries. Taiwan and China make them.
I just Googled how many universities are there in China. Answer 732.
I just Googled how many university graduates per year in China. Answer: 797 million
Of the 7.97 million Chinese graduates of 2020, around 4.2 million earned a bachelor's degree, whereas 3.77 million earned a more practically oriented short-cycle degree. On a graduate and postgraduate level, around 728,600 master's and doctor's degree students graduated from public colleges and universities in China in 2020.
Sooner or later, China will overcome all the obstacles imposed by US.
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Discussions
1 person likes this. Showing 32 of 31 comments
You have to know that except for a few universities, majority of the universities in China are not really up to the standard. That's why millions of Chinese families try to send their kids to study oversea.
2022-10-17 18:36
America argues that such advanced semiconductors can be used by China for advanced military capabilities
Answer : This is the main reason! All those bs about China and Russia possesing hypersonic military assets are pure bs! Without US very high end chips, they can't build them! Look at Russia today! Can't even build missiles anymore as they need US chips! That's why Russia resort to buying Iranians missiles and drones! What a shame! Seems Putin has been tokok possesing superior military assets befure Ukraine invasion! Today, Putin even has to refurbish antic tanks for battle!
2022-10-17 22:04
its too late for US to stop China.......................... Biden is killing their own tech companies.
2022-10-17 22:12
if they cannot sell to the largest market, then can ask them to close shop.
2022-10-17 22:14
Preparing for the Great War la, and it would hurt American companies if they are too invested in China. It’s time to slowly decouple
2022-10-17 23:52
UpAgain! Bingo! Finally some else figure out what's going on! WW3 is looming! Many still in dreamland at the moment!
2022-10-18 02:44
Chinese and Indians are born with chip brains............................................
2022-10-18 11:38
China will have to bear with this ungentlemanly treatment from the US government.
Undoubtedly, with the strong character and wisdom from the Chinese leaders, they will be able to withstand the threat and will stand to wipe away the challenging circumstances confronting them both at their personal level as well as at the national level.
China could resolve to source to find the alternative for the shortage of supply of those important parts.
6 seconds ago
2022-10-18 13:10
its not ww3.........its cold war 2.0..................but I think europe can go with China so its actually anglos vs China and rest of the world.
2022-10-18 14:54
look at england and large parts of america, its in a state of disrepair, broken, dirty, very depressing.
2022-10-18 14:58
The issue is a big topic. America's chip export restrictions to China. We need to discuss more
https://stumbleguysonline.io
2022-10-18 18:08
When a group of semiconductor companies, including Intel Corp., lobbied Congress to pass the $52 billion chip-stimulus bill earlier this year—one of the biggest federal investments in a private industry—they argued in part that the subsidies and tax breaks would protect American jobs.
But now just months before the funding applications open, the nation’s largest semiconductor company is reportedly planning a major reduction in its workforce—yet could still receive billions in federal subsidies. Thousands of Intel employees are expected to be laid off later this month to cut costs amid a steep decline in demand for PC processors, according to Bloomberg. Some divisions, including sales and marketing, could lose 20% of their staff.
Intel is under intense pressure from investors, as its shares have fallen more than 50% this year. The company posted a net loss of $454 million in the second quarter, compared with a net income gain of $5 billion for the same period a year ago. Analysts are predicting more grim news to come out of the company’s upcoming earnings release, with an expected third-quarter revenue drop of roughly 15%.
Even so, the reported job cuts come at an awkward time for Intel, given that the company lobbied heavily for the subsidies and committed $20 billion to build a manufacturing mega-site on the outskirts of Columbus, Ohio earlier this year. The move also puts Intel chief executive Pat Gelsinger—who received a $179 million compensation package last year—in a difficult position. In December, he lobbied Congress to pass the funding, co-signing a letter to lawmakers that said federal subsidies would be “supporting millions of jobs for Americans.”
2022-10-19 10:06
ss......................................the 52 b is just in time to save intel from bakruptcy.
2022-10-19 11:09
beijing to start photo optic chip factory next year. ...........completely new technology.
2022-10-19 11:11
Global Times reported China will start mass production of photonic chips in 2023
2022-10-19 12:43
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You have to know that except for a few universities, majority of the universities in China are not really up to the standard. That's why millions of Chinese families try to send their kids to study oversea.
2022-10-17 18:36