Trade restrictions that the United States has imposed on Chinese companies in recent years continue to draw backlash from China. It is now attacking chip manufacturer Micron, which is excluded from the Chinese market for fragile reasons.
US-China trade relations deteriorate
Under Donald Trump, the United States has engaged in a rigid policy toward China, partly to strengthen the American economy and partly to protect it from Chinese espionage. Many Chinese companies are affected by trade restrictions; American companies are not allowed to sell to them. This has led, for example, to the fact that Huawei cannot install current chips from American manufacturers in its new cell phones. There are also high import duties and other restrictions. China reacted from the start with very similar measures.
Other fundamental differences between the United States and China are echoed in the conflict. For example, Chinese companies are known for stealing intellectual property from the Western world and offering copied products. Furthermore, economic sanctions against Chinese companies can also be linked to efforts to combat current human rights violations in China. Overall, then, this is much more than just a dispute over economic supremacy.
Micron forced to leave the Chinese market
The latest victim of these disputes is the American chipmaker Micron, which is no longer allowed to operate in the Chinese market. The reasoning of the responsible Chinese authority is thin: Micron violated the requirements and represents a security risk. We absolutely do not know what conditions these are. But it is obvious that this is a political decision.
The exact consequences for Micron are not yet clear. It is clear that large Chinese companies are no longer allowed to purchase and install Micron chips. It remains to be seen whether the company will have to completely disappear from the Chinese market. However, this move is not a surprise. According to media reports, the US government had already contacted South Korea a few weeks ago to ensure that South Korean chipmakers would show restraint in the event of sanctions against Micron. However, South Korea reportedly rejected the request: the country does not want to interfere in corporate affairs and does not want to restrict Samsung or SK Hynix, he said.
Sanctions against more companies?
It is not yet clear whether China will also take action against other US chip companies. Qualcomm and Broadcom in particular could still be forced out of the market. However, this is just speculation. It also remains to be seen what effects Chinese measures against chipmakers will have in a particularly tense market situation. Micron claims to make 16 percent of its total sales from China and Hong Kong.
2023-09-25 23:56:13
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