The United States government has ordered Taiwan Semiconductor Manufacturing Co Ltd (TSMC) to halt shipments of advanced chips to Chinese mainland firms from Monday, according to a Reuters report, marking yet another instance of arbitrary and heavy-handed interference in international trade.
That the US Department of Commerce ordered Taiwan-based TSMC to stop shipping advanced chips used in artificial intelligence (AI) accelerators and graphics processing units (GPU) to all mainland firms, and that the chipmaker immediately followed Washington’s diktat to the letter, has laid bare US hegemony as well as the nature of the “rules-based international order” that has been frequently touted by Washington and its allies, including the Taiwan government.
This latest move, shrouded beneath the veil of “national security” concerns, is a blatant attempt to stifle China’s technological advancement and economic growth. Such actions undermine the fundamental principles of fair trade and expose the US’ growing fear of China’s inevitable rise as a global leader in innovation and technological prowess.
By targeting AI and GPU chips of seven nanometers or more advanced designs, the US is, in essence, seeking to cripple China’s burgeoning AI sector. The decision to prohibit TSMC from supplying chips to mainland companies, including tech giant Huawei, is not grounded in any concrete evidence of wrongdoing by Chinese companies. It was simply part of the technological and economic warfare against China, which is part of Washington’s geopolitical strategy to contain China’s rise.
It is essential to recognize that Huawei, one of the prime targets of the Washington-imposed chip export ban, has long been a victim of unjust US trade policies. Huawei was placed on the US Entity List in 2019, a move that has severely restricted its access to critical technologies.
In January 2020, the then-British prime minister Boris Johnson approved a 35 percent stake for Huawei in the United Kingdom’s 5G technology development, indicating that there were no risks involved. However, six months later Johnson reversed his decision at the behest of Washington, citing “security” concerns.
The US’ track record of economic protectionism has been made evident also by other incidents. In 2022, the US imposed similar restrictions on Nvidia and AMD — both based in California — barring them from exporting high-performance AI chips to China. The fact that these restrictions have been expanded and applied to other companies further exposes Washington’s real agenda: To slow down China’s progress in the critical field of AI technology and ultimately in its overall national strength and competitiveness. These actions are not about safeguarding “national security” but protecting US economic interests and global hegemony.
These and other incidents have left fair-minded person in no doubt about Washington weaponizing trade policies to maintain its technological dominance and global hegemony, all while accusing China of the practices that the US itself engages in.
Washington’s latest move can be more easily understood in the context that China has made tremendous strides in the semiconductor industry despite years of US attempts to suppress its growth. China’s semiconductor companies have been rapidly advancing in technological development, with significant investments in research and development and innovation. According to an industry report in 2023, China remained the largest individual market for semiconductors in 2022, with sales there totaling $180.4 billion. These achievements have been made in the face of relentless US sanctions, proving that China’s resolve to innovate and lead in the technology sector cannot be thwarted.
Moreover, the US’ approach to launch export controls is inherently flawed from a global perspective. By cutting off China’s access to advanced chips, the US is harming Chinese companies and disrupting the global supply chain. TSMC, a key player in the worldwide semiconductor industry, is caught in the crossfire of this tech war. US policies are compromising its ability to operate freely in the international market. The semiconductor industry thrives on collaboration and open access to markets. Restrictive trade policies only fragment the industry and create inefficiencies that harm all stakeholders, including US companies that rely on global supply chains.
The US must realize that the world is no longer one in which it can unilaterally dictate the terms of trade and technological development. Fair competition, not coercion, should be the guiding principle of global trade. And as history has shown, those who seek to suppress others will ultimately find themselves left behind
The US fails to recognize that China’s rise in the global technology arena is inevitable. No amount of sanctions or export controls can change the fact that China is home to one of the world’s largest and most dynamic markets for technology. Chinese companies will continue to innovate, with or without access to US technologies. These restrictions will catalyse China to accelerate its efforts toward self-reliance in the semiconductor space. Chinese firms have developed indigenous chip technologies that rival their Western counterparts’. US containment attempts won’t deter China’s determination to progress or even to lead in AI, quantum computing, and other cutting-edge technologies.
The US’ tech war against China stems from fear of losing its dominant position in the global tech landscape. But its strategy is shortsighted. In the age of globalization, no country can afford to isolate itself or another from the flow of innovation. The US’ actions are not only detrimental to China but also to the global economy and its allies. The world needs a level playing field where competition is based on merit and innovation, not coercion and protectionism. By using trade as a weapon, the US is undermining the very principles of free trade that it claims to champion.
China, on the other hand, will continue to move forward. With its vast resources, skilled workforce and unwavering commitment to innovation, China will weather this storm and emerge stronger. The US may attempt to slow China’s progress but cannot stop it. The future of technology is not one that a single nation can dictate. It is a future that will be shaped by those willing to collaborate, innovate and embrace the principles of fairness and mutual respect.
The US must realize that the world is no longer one in which it can unilaterally dictate the terms of trade and technological development. Fair competition, not coercion, should be the guiding principle of global trade. And as history has shown, those who seek to suppress others will ultimately find themselves left behind.
The author is a solicitor, a Guangdong-Hong Kong-Macao Greater Bay Area lawyer, and a China-appointed attesting officer.
The views do not necessarily reflect those of China Daily.
