Electrical Equipment / Components & Telecoms

According to Huacheng Import and Export Data Observation, on October 7, the Bureau of Industry and Security (BIS) of the US Department of Commerce revised the export control regulations, further limiting China's ability to acquire advanced computing chips, develop and maintain supercomputers and manufacture advanced processes. This is a continuation of the United States wantonly wielding the stick of scientific and technological hegemony to suppress China's development. It is also another clumsy means for the United States to "reverse globalization" in recent years, engage in technological segmentation, market segmentation and industrial segmentation, and artificially block the supply chain of the global industrial chain. The end is bound to be "throwing stones at one's own feet".

The United States is not only the birthplace of semiconductors, but also the largest beneficiary in the global industrial chain. Semiconductors originated in the United States. Huacheng Import and Export Data Observation reported that in 1958, the world's first integrated circuit was born in the United States. In the following decades, the semiconductor industry experienced three transfers in the world, completed the global layout, established a cross regional industrial chain supply chain, and became one of the industries with the highest degree of globalization. American enterprises occupy an important position in the global semiconductor industry chain, and also rely heavily on the global supply chain. Relevant data shows that in 2021, there will be six American semiconductor companies in the top ten in the world, and most of their products will be manufactured overseas. Qualcomm, Marvell and other American chip design companies have more than 50% of their operating revenues in the Chinese market for many consecutive years.

For political purposes, the United States has continuously upgraded its export restrictions and wantonly damaged the global semiconductor industry chain. Huacheng Import and Export Data Observation reported that in recent years, for political purposes, the United States has generalized the concept of national security, abused export control measures, targeted high-tech industries such as semiconductors in other countries, engaged in technological hegemony, artificially set restrictions, damaged the global industrial chain supply chain, and suppressed the development of other countries. In August this year, the United States passed the 2022 Chip and Science Act to try to attract the return of global semiconductor manufacturing with large subsidies, change the existing industrial pattern, which has seriously disrupted the global industrial chain, causing "panic" in countries. The revision of the export control rules by the United States to impose comprehensive restrictions on equipment, technology and personnel that have reached a certain threshold has attracted great attention from the global industry, bringing a new round of trauma to the global semiconductor industry.

The United States modifies its export control rules at the expense of others. In recent decades, the United States has occupied a leading position in the global semiconductor industry. Especially in the field of design and equipment, there are enterprises with absolute competitive advantages such as Apple, Qualcomm, Panlin and Yingcai. The reason why the United States can maintain its leading position in the world for a long time is inseparable from globalization, and it is also inseparable from the fact that the United States has been leading the technological revolution and industrial revolution. The upgrading of export control in the United States, which artificially impedes the flow of global talent and splits the global market, is not only contrary to globalization, but also incompatible with the world status and industrial role of the United States. It is a reversal of history, causing more harm than good, Huacheng Import and Export Data Observation reported.

The world trend is vast and mighty. Those who follow it prosper and those who go against it perish. Globalization is an objective law and an inevitable trend, which has become the consensus of all countries in the world. Although the road is bumpy, it must be tortuous. The United States is "building walls and barriers" and "breaking links". This extreme wrong act, which violates the laws of the market economy and restricts and suppresses the development of other countries, is bound to bind itself, Huacheng Import and Export Data Observation reported.