Beijing has asked US chipmaking giant Intel to establish a base in China to help maintain the stability of the global industrial supply chain, state radio reported on Wednesday.
China’s Vice President Han Zheng told Intel CEO Pat Gelsinger that multinational companies need to “overcome difficulties and challenges” to promote better global cooperation, according to the report.
Gelsinger is attending an Intel forum in Beijing, state media China Daily reported, adding that he called China’s role in the company’s business goals “incredibly important.”
Beijing’s request comes amid a deepening chip war between China and the US, which has seen American allies Japan and Netherlands joining a move to implement export restrictions on advanced chips and chipmaking gear.
The moves aim to hobble China’s semiconductor industry and cut the Chinese military’s access to advanced technology.
“China adheres to the basic state policy of reform and opening-up,” state media Xinhua quoted Vice President Zheng as saying. Beijing will “continue to provide better services to foreign companies,” he added.
“Intel is welcome to stand committed to the Chinese market and contribute to promoting China-US economic and trade cooperation,” Zheng said, according to the report.
China key for Intel
Speaking at the company’s forum in Beijing, Gelsinger said “Intel’s presence in China is very important,” according to a report by the South China Morning Post.
China is one of “one of Intel’s most important markets,” he said.
Gelsinger also said China played a key role in “the research, development and production of IT products,” according to the China Daily report.
This is Gelsinger’s first trip to China — Intel’s biggest market — since taking over as chief of the US tech giant.
Earlier, he met China’s industry minister Jin Zhuanglong, who said China can provide a vast market for multinational companies such as Intel.
China highly values the development of advanced manufacturing industry and will provide good conditions for foreign investments, Zhuanglong told Gelsinger, according to a ministry statement on Thursday.
The Intel chief also met China’s Commerce Minister Wang Wentao in Beijing on Tuesday. The two exchanged views on maintaining the security and stability of the global semiconductor industry chain, the Chinese Commerce ministry said.
China will provide a broader market for multinational companies, including Intel, the ministry quoted Wang as saying.
He added that China is committed to “high-level opening-up” of the economy, and that the world’s second largest economy will ‘open its doors wider.’
- Vishakha Saxena, with Reuters