By Gabby Chen

China's ambassador to US Qin Gang condemned several recent American measures on semiconductors restrictions and controls on China, saying that the US misjudgment may cause almost $10 billion for the global industry in the next three years and bring considerable negative impact in the mid-to-long term, JW Insights reported.

Ambassador Qin expressed his criticism at the US-China Business Council (USCBC) Gala 2022 in Washington DC on December 6.

Source: Internet 

Excerpt of the part of Qin's speech on the US-China business relationship is as follows and the full speech is available on the website of the Embassy of China in the US (http://us.china-embassy.gov.cn/eng/dshd/202212/t20221208_10986812.htm).

Some people worry that a tense China-US relationship will hamper our economic and trade cooperation. I share this worry. China and the US are major trading and investment partners.

Our industries are deeply integrated and complementary. Our cooperation has huge potential to tap. Having said all this, the US defines China as "the most serious competitor" and "the most serious long-term geopolitical challenge", out of grave strategic misperception and misjudgment.

Because of this, it has imposed export controls, import restrictions, investment reviews, as well as measures in tech cooperation, industry supervision and industrial subsidies.

These measures have reduced semiconductors, new energy, and other areas that should have provided business opportunities to some "no-go areas". They run counter to the principles of market economy and rules of international trade, and are disruptive to global industrial and supply chains.

The US has recently introduced several restrictions on semiconductor export to China. These restrictions will cost the global semiconductor industry almost $10 billion in the next three years, and bring considerable negative impact in the mid-to-long term.

What the US needs is growing its economy, adding jobs, cutting inflation and reducing budget deficits. Healthy, stable and cooperative trade relations with China will serve America's own interests. Stretching the concept of national security and politicizing and weaponizing economic and trade ties should not be the real purpose or normal state of such ties. Building a small yard with high fences, cutting off supplies, and seeking decoupling are detrimental to both oneself and others.

We should not let national security stand in the way of economic development and improvement of people's lives in both countries. On issues concerning the economy and trade, people need to face the reality that China and US are deeply integrated, people should take the interests and voice of the business community seriously, follow business rules, and conduct professional discussions.

To decouple from China is to decouple from potentially the biggest market in the world; to cut off supplies for China is to cut itself off from opportunities.

#Supply chain #US #Qin Gang