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Chips are down as US works to block China’s semiconductor plans

(ATF) With a small microchip held between his fingers US President Joe Biden has sent some sections of Chinese media and government into a form of apoplexy. “Is this little thing Biden’s best weapon against China?” asked The Global Times.

The question comes with the United States and Japan looking to cooperate in the semiconductor industry and planning to establish common ground during Prime Minister Yoshihide Suga’s April 16 visit to the US. 

At the same time, the United States has also invited South Korea to join a ‘Semiconductor Alliance’ in a bid to prevent China developing a semiconductor industry. 

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But Germany and Japan have also recently begun talks on a similar alliance to prevent Chinese acquisition of vital chip making equipment. 

And Nikkei Asia has reported that Japan and Germany’s foreign and defence ministers will meet in mid-April to discuss joint efforts toward ensuring a free and open Indo-Pacific, in response to China’s growing presence in the region. 

It’s claimed China’s belligerent attitude towards Taiwan and its Asian neighbours of late is what has led to international talks to stymy China’s attempts to build a domestic semiconductor industry.

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Chris Gill

With over 30 years reporting on China, Gill offers a daily digest of what is happening in the PRC.


AF China Bond