China’s Commerce Minister recently expressed concern about Chinese chips as the US is planning to survey its use.
The planned survey by the US aims to prevent threats to the US chip supply chain. (Photo: Sixth Tone)
Chinese Chips As A Source Of Concern
China’s Commerce Minister, Wang Wentao, expressed concern over the Biden administration’s survey of the use of Chinese chips in critical US industries. The US Commerce Department plans to launch a survey to identify how American companies source current-generation and legacy Chinese chips.
According to a published article by Asia Times, the US believes that there are practices that may expand legacy Chinese chips production and threaten the US legacy chip supply chain.
Washington is worried about below-market pricing for Chinese chips due to subsidies provided by the Chinese government to chipmakers.
The US sees protecting national security as non-negotiable and aims to safeguard it without unduly limiting trade and investment.
Problems With Local Chip Production
In a published article by the South China Morning Post, China’s imports of integrated circuits decreased in volume and value in 2023, reflecting economic challenges and efforts to boost local Chinese chips production.
Data showed that China imported 479.5 billion Chinese chips worth $349.4 billion, a decline of 10.8% by volume and 15.4% in value compared to 2022. Despite the decrease, Chinese chips remained China’s largest import, surpassing crude oil.
The decline in Chinese chips imports can be attributed to weak smartphone and laptop sales, as well as China’s drive to reduce reliance on imported chips.
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