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Beijing castigates the America Competes Act and speaks of a “new cold war”

by admin
United States

Beijing’s reaction leaves no room for doubt: this bill will intensify the technological rivalry between the two great world powers. Zhao Lijian, the spokesperson for the Chinese Ministry of Foreign Affairs, points out that the America Competes Act contains inappropriate remarks on Taiwan, Xinjiang, Hong Kong, and Tibet.
Chinese Foreign Ministry spokesman Zhao Lijian called the America Competes Act (the semiconductor industry competition and development bill) “a new product of cold war between the United States and China”.

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China does not want the America Competes Act

The country of Uncle Sam wants to put 352 billion dollars on the table to stimulate production and research and development in the field of semiconductors. A 2,900-page text should allow the United States to catch up on Asia and more particularly on China. The America Competes Act plans to massively support the industry to achieve this. Beijing’s reaction leaves no room for doubt: this bill will intensify the technological rivalry between the two great world powers.

In China, state media and several senior officials have criticized the likely arrival of the America Competes Act. This bill provides funding of $52 billion to boost semiconductor production on American soil, $45 billion to strengthen supply chains, and $250 billion to accelerate research and development. ‘innovation. No wonder this bill irritates Beijing. It includes guidelines for addressing concerns about alleged human rights abuses in Xinjiang, crackdowns on democracy in Hong Kong, and tensions in Taiwan.

This bill reflects a “cold war mentality” according to Beijing

Zhao Lijian said Monday, February 7, 2022, that China strongly opposes the America Competes Act because it is “infused with a Cold War mentality, undermines China’s development paths and policies. , that he defends the rhetoric of competition with China and that he makes inappropriate remarks about Taiwan, Xinjiang, Hong Kong and Tibet”. Remarks similar to those made last year by Wang Wenbin, when the US Innovation and Competition Act was passed. The field of semiconductors is increasingly sensitive.

Today, the United States finds itself in an “alarming” situation.

From the early 1990s to 2020, the United States’ share of global chip production fell from 37% to 12%. It should even fall by another 3% by 2030. Unless support from the public authorities enables the trend to be reversed. China, meanwhile, should see its share of chip manufacturing increase from 12% in 2020 to 28% in 2030. Rivalries between the two major world powers have crystallized for several months around this subject.
Today, the United States finds itself in an “alarming” situation. From the early 1990s to 2020, the United States’ share of global chip production fell from 37% to 12%. It should even fall by another 3% by 2030. Unless support from the public authorities enables the trend to be reversed. China, meanwhile, should see its share of chip manufacturing increase from 12% in 2020 to 28% in 2030. Rivalries between the two major world powers have crystallized for several months around this subject.

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