The Chinese government has announced that it will take action firm to protect the economic and commercial order between the two sides of the Taiwan Straitas well as the interests of Chinese citizens. The announcement was made by Zhu Fenglian, spokesman for the Taiwan Office of the China State Council.
The reason for the announcement was that Taiwan restricted exports to more than 600 continental China companiesincluding technology giants like Huawei and SMIC. The restrictions caused an immediate reaction from Beijing, which promises to defend his economic and technological interests, according to Bloomberg report.
Although China has not yet specified what its measures will be, experts point out some options that the Chinese Communist Party (CCP) can take:
- Severe limitations on rare mineral exports;
- Restrictions on operations of Taiwanese companies in Chinese territory;
- Importing Taiwanese products not related to high technology.
These actions can directly impact the Taiwan semiconductor industry, especially companies like PSMC, Vanguard and UMC. These companies face increasing competition from cheap chips produced in China in more mature technologies.
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BACKGROUND OF THE CASE
It is not today that Taiwan strives to bar transfer of state -of -the -art technologies, such as TSMC’s to other countries. For its part in February, China accused Taiwan of favoring the US. Which shows that the tension for the chips is not today.
Earlier this month, Taiwan’s Ministry of Economic Affairs updated its list of restricted foreign entities. The list includes 601 Chinese companies, such as Huawei and SMIC (Semiconductor Manufacturing International Corp)chips main chips.
Taiwanese companies will now need a mandatory export license to provide products or services to listed organizations. AND unauthorized exports will be blocked by the customs authorities.
The decision aims to align Taiwan with US export controls and their allies.
What are the taiwanese motivations?
The measure was motivated by previous infractions, as The illegal acquisition of advanced TSMC chips by Huawei. The acquisition violated US sanctions. Since then, Huawei has sought local suppliers, but remains dependent on components made in Taiwan.
The Chinese government vehemently condemned the decision. The CCP claims that this is a “technological barrier” that compromises regional supply chains. According to Chinese authorities, “technological blocks will not deter the scientific and industrial advance of mainland China.”
Beijing’s perspective, any effort to undermine economic cooperation between the two sides of the narrow directly affects Taiwan’s competitiveness.
Risks and Alternatives
At the end of last year, Huang Yen-Nun, Minister of Digital Affairs for the Taiwanese government, reported that the country suffers 15,000 attacks per second. This number represents four times the average attack of this type to other countries.
Nevertheless, the country is seen as a possible place for Nvidia’s global headquarters. In addition, AMD should build two research and development buildings on Taiwan Island.
At the same time, TSMC has created its own factories in the US, with one of them already reaching the same production as in Taiwan in tests. The company’s measure reinforces the perspective of mainland China, while it is a defense of the company to tariffs announced by the Trump administration.
Fonte: Bloomberg.
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Source: https://www.adrenaline.com.br/hardware/china-planeja-retaliacao-contra-taiwan-por-colocar-huawei-em-lista-proibida/
