Chinese chipmaker SMIC in 'preliminary exchanges' with U.S. over export restrictions

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Chinese chipmaker Semiconductor Manufacturing International Corp (SMIC) said on Sunday that it has undertaken "preliminary exchanges" with the U.S. Bureau of Industry and Security regarding export restrictions.

[kckoay]

For those who think that China and Chinese companies can be bullied into submission, think again.

The primary concept behind global supply chain is that businesses can improve their efficiency, and reduce their costs via specialization so as to remain competitive in the business landscape. By sourcing for intermediate goods and services from other companies through established supply chains, enable companies to focus on their respective core competence, .

Now, the callous action of Washington to deny the Chinese companies of perceived core technology may, on the sort run, cause some difficulties to them; but it will equally bring about unintended consequences for their American counterparts. Besides, it is going to hurt the American companies more than these Chinese companies on the long run.

To begin with, Washington is sending a wrong message to the world which will effectively rollback the interdependence and trust, that is the very foundation of global supply chain. In order words, it will create a trust deficit across the highly intertwined global supply chain.

But what will happen is — the Chinese will no longer trust their American counterparts and will speed up the process of being self-reliance and self-sufficient. As it is, China already boast of inarguably the most comprehensive industrial infrastructure in the world, albeit leading in some and lacking in others. But truth be told, the advantages enjoyed by the Americans has started to peter out.

Besides, this will push the Chinese companies into an overdrive to race ahead — as they are left with no option, even if it means having to reinvent the wheel.

[generalx]

It’s also sending the wrong message to those that buy US treasuries. When politicians suggested defaulting on their debt obligations towards China in retaliation. What does this mean for other countries buying US Debt? They may not want to be the bearer anymore, if they follow through, US security instraments would have no guarantee and the onset of sell offs will cascade. The end of the US dollar as reserve currency will play out. They should rethink their strategy... carefully.

[nileshbhattacharya]

China is also peaceful and loving country 🇨🇳 🇨🇳🇨🇳🇨🇳❤️❤️❤️❤️❤️❤️❤️🇨🇳 and my favorite also 🙏

[wumaobot]

Love China from Indonesia, Xi jin PING the best President

[catonpillow]

The US is cutting the branch its sitting on. It's cutting its own companies from making business with some of their largest customers. So that will have short term self-inflicted pain. The bigger problem is that what they're doing now is actually driving China to move away from the US as a supplier and speed up its own home-grown capacities. So the US will not only lose its clients but will also have a competitor to deal with. So the long-term self-inflicted pain will be much greater. Someone should've put a leash on the religious zealots in the White House while he could.

[youmustbefibbing]

Let's hope China come up with the next generation of chips and turn the table on the West.

[gloriakong]

🙏china will double down and increase their investment to develop their own technology and be a world leader independent of usa tech.

[hadilee]

Whatever the results are, knowing how politics can unreasonably mixed up in business decision, you have to be ready with plan b and plan c when dealing with the US, just in case.

[mindmybusynass.m]

Soon you will need permition to buy lettuce.

[sergiomoran]

When you think you can kick the talest guy in school because you started the Karate class 2 days before