Commentary
BEIJING – The latest move of the United States to curb high-tech investment in China will ultimately backfire, stunting its own growth while jeopardizing the fragile recovery of the global economy.
The US government announced new regulations on Monday that restrict investments in China’s semiconductor, AI and quantum technology sectors, effective from January next year.
This move coincided with an announcement on Monday by US semiconductor giant Intel of a US$300 million expansion plan of its base in southwestern China, showing once again how Washington’s policies contradict with the judgment, choices and interests of American businesses.
For US tech giants like Intel, Apple, Tesla, Nvidia and Qualcomm, China stands as an indispensable market with significant potential to generate profits, which can, in turn, fuel their extensive research and development.
However, these restrictive regulations risk crippling US tech companies in a high-growth, tech-driven market, placing them at a competitive disadvantage globally.
The global semiconductor market is currently in a hard-won recovery, driven in large part by China’s strong performance.
According to the latest data from the US Semiconductor Industry Association, China’s semiconductor sales surged by 19.2 percent year on year in August, a contrast to Japan’s modest 2 percent growth and Europe’s 9 percent decline over the same period.
Policymakers in both the United States and China are eagerly looking for a tech revolution to fuel sustained economic growth. However, isolating from the world’s second-largest economy will take a heavy toll on US tech firms that are at the forefront of such a revolution.
Moreover, this approach starkly contradicts market economy principles and fair competition, going against US President Joe Biden’s assurances that his administration is not pushing for an agenda of “decoupling” from China.
The US anxiety over losing its technological edge is understandable. However, dimming the lights of others will not enhance its own standing. Similarly, regarding China as a “strategic rival” and wielding trade and investment as a weapon to advance a politically charged, ideologically biased agenda will lead to a scenario with no winners.
The entrepreneurial spirit that once propelled the United States to greatness is also crucial to the country’s future success. It would be advisable for the US government to heed the voices of businesses rather than placing obstacles on their path. – Xinhua
