Senior Chinese diplomat decries US Chips Act, ‘decoupling’ in speech to SOEs

Name: China condemns new US law aimed at boosting domestic semiconductor manufacturing
Uploaded: 2022-11-03T07:30:12.000Z
Duration: 1 min 57 s
Description: China condemns new US law aimed at boosting domestic semiconductor manufacturing

Foreign vice-minister Xie Feng reassures business leaders and diplomats that Beijing remains ‘steadfast’ in opening up to overseas markets

He also takes aim at ‘friendshoring’ and attempts to ‘contain and suppress China’

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US companies that receive funding under the Chips and Science Act are banned from building leading-edge facilities in China for 10 years. Photo: Shutterstock

Cyril Ip

Published: 3:30pm, 3 Nov 2022Updated: 3:34pm, 3 Nov 2022

A senior Chinese diplomat called for cooperation with foreign firms, denounced the US Chips Act and reassured business leaders that “opening up” to overseas markets remains a national objective during a speech to foreign diplomats and state-owned enterprises.

In an apparent criticism of Washington’s China-targeted Chips and Science Act, which offers financial incentives to tech companies that make semiconductor investments on American soil, foreign vice-minister Xie Feng described efforts to suppress China as “counterproductive”.

“Presently, some countries are keen to forge small circles, instigate ‘decoupling’, build ‘small courtyards with high walls’, implement ‘friendshoring’, establish ‘chip alliances’, weave exclusive economic frameworks, and vainly attempt to gang up to contain and suppress China,” Xie said in Beijing on Wednesday.

“Friendshoring” refers to Washington’s efforts to insulate its supply chains from China by influencing firms to move their sourcing and manufacturing sites to US-allied countries. Observers said academics in science, technology, engineering and mathematics have also been affected by the measures.

Xie, who specialises in US-China relations and previously headed the office of the Chinese foreign ministry in Hong Kong, noted that the trade volume between the two countries reached a record-breaking US$750 billion in 2021, marking a 28.7 per cent year-on-year increase.

“This fully reflects that people from all walks of life, including the business community, have sharp eyes, that the market’s principles are powerful, and that the concept of win-win cooperation is deeply rooted in the hearts of the people,” Xie said, pointing to Tesla and Volkswagen’s latest investments in China.

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China condemns new US law aimed at boosting domestic semiconductor manufacturing

“Opening to the outside world is an inevitable requirement for building a human community with a shared future. China is not only its firmest advocate, but also a down-to-earth, action-oriented [country],” Xie said.