Why is China fighting so hard against the US’ new chip ban – and will it work?
Beijing’s strong reaction to new US curbs on Chinese chips stems from a growing confidence that it can outlast Washington in a stand-off, analysts say
China’s escalating protests against new US restrictions targeting Chinese-made microchips are a sign of Beijing’s determination not to cede any more ground in its stand-off with Washington over a basket of tech and trade issues, analysts said.
The move also reflects China’s growing confidence in its ability to go toe-to-toe with Washington over trade and technology issues, with Beijing likely aiming to force Washington to “at least back down” over the chip rules, they added.
“China’s stronger retaliation post-Liberation Day may have been to prevent the ‘give them an inch and they’ll take a mile’ style of development from continuing,” said Lynn Song, chief Greater China economist at investment bank ING, referring to the day US President Donald Trump launched his so-called “reciprocal” tariffs, on April 2.
“China has generally been confident that it would win a test of endurance if need be.”
The conflict stems from the US Bureau of Industry and Security’s announcement last week that it had issued new rules banning the global use of advanced Chinese chips, with a specific reference to tech giant Huawei Technologies’ Ascend 910 series.