US bars 'advanced tech' firms from building China factories for 10 years

[beijingwalker]

US bars 'advanced tech' firms from building China factories for 10 years​

By Monica Miller
BBC News, Singapore

US Commerce Secretary speaks at White House briefing

US tech companies that receive federal funding will be barred from building "advanced technology" facilities in China for 10 years, the Biden administration has said.

The guidelines were unveiled as part of a $50bn (£43bn) plan aimed at building up the local semiconductor industry.
It comes as business groups have pushed for more government support in an effort to reduce reliance on China.
They are faced with a global microchip shortage which has slowed production.

"We're going to be implementing the guardrails to ensure those who receive CHIPS funds cannot compromise national security... they're not allowed to use this money to invest in China, they can't develop leading-edge technologies in China.... for a period of ten years," according to US Commerce Secretary Gina Raimondo., explaining the US Chips and Science Act.

"Companies who receive the money can only expand their mature node factories in China to serve the Chinese market."

The US and China are locked in a long-running dispute over trade and technology.

n August, US President Joe Biden had signed a law committing $280bn (£232bn) to high tech manufacturing and scientific research, amid fears that the US is losing its technological edge to China.

The investments include tax breaks for companies that build computer chip manufacturing plants in the US.

The US currently produces roughly 10% of the global supply of semiconductors, which are key to everything from cars to mobile phones, down from nearly 40% in 1990.

The Chinese Embassy in Washington had opposed the semiconductor bill, calling it reminiscent of a "Cold War mentality."
Some US chipmakers are already experiencing the impact of Washington's crackdown on selling US technology to China. Earlier this month, Nvidia and AMD were told by US officials to stop the sale of artificial intelligence chips to China.

Dan Ives of Wedbush Securities called the restrictions a "gut punch" for Nvidia.

"This is really a shot across the bow at China and it's really going to fan those flames in terms of geopolitical (tensions)," Mr Ives had told teh BBC.

US bars 'advanced tech' firms from building China factories for 10 years

The plan - for the next for 10 years - comes amid pressure from business to reduce reliance on China.

www.bbc.com

 

[beijingwalker]

It seems that 10 years time is about the time frame that US believes their bans will become useless.

 

[MH.Yang]

The US government still has not learned a lesson from history. This kind of blockade will only make Chinese enterprises stronger.

 

[Hamartia Antidote]

We aren't the only ones. The EU is doing 45 billion Euros:

EU plans multi-billion euro boost for chip production to ease supply disruptions

The EU is stepping up investments in chip production to avert supply chain disruptions and ultimately become more independent from Chinese firms.

www.cnbc.com

Press corner

Highlights, press releases and speeches

ec.europa.eu

"It will enable EUR 15 billion in additional public and private investment until 2030. This comes on top of EUR 30 billion of public investments that we have already planned"

The US government still has not learned a lesson from history. This kind of blockade will only make Chinese enterprises stronger.

I think history has shown Chinese enterprises target major industries whether or not any "blockades" exists. You can see it in your 5 year plans.

Anyways this ban is just so companies dont take the Federal money and use it to setup another factory overseas.

 

[Great Janjua]

America is probably the only country on the planet itching for the destruction of this world they dare to do it openly as well.

 

[beijingwalker]

US is struggling to hold on to the last shred of hope of keeping their almost century old global domination.

 

[VCheng]

US tech companies that receive federal funding will be barred from building "advanced technology" facilities in China for 10 years, the Biden administration has said.

It is very simple: if any tech company wants to build factories in China, they are free to do so, just do not avail federal funds. What is the problem here?

 

[beijingwalker]

It is very simple: if any tech company wants to build factories in China, they are free to do so, just do not avail federal funds. What is the problem here?

Good. China should do the same

 

[SecularNationalist]

The US government still has not learned a lesson from history. This kind of blockade will only make Chinese enterprises stronger.

Yeah necessity is the mother of invention.
They will be forced to find a solution.

 

[VCheng]

Good. China should do the same

Please go ahead! Nobody is stopping China from doing what it feels necessary to do as a sovereign nation.

 

[jhungary]

Good. China should do the same

So you are saying China allow their company to use Chinese Government funding to build factory overseas??

Don't know there are any SOE or State Sponsored company have factory overseas...

 

[beijingwalker]

So you are saying China allow their company to use Chinese Government funding to build factory overseas??

Don't know there are any SOE or State Sponsored company have factory overseas...

I just said China should do the same whether she already did it or not.

 

[jhungary]

I just said China should do the same whether she already did it or not.

Then what is your problem with US doing the same to stem State Capital flow? If any?

 

[gambit]

Make whatever claims you guys want for China, just do not break the laws of physics.

 

[beijingwalker]

Then what is your problem with US doing the same to stem State Capital flow? If any?

No problem , fair play, we should do the same.