Chip War: Better Behavior, Enthusiastic Reactions


“Under pressure from business, senators have rowed back on plans for an immediate moratorium on Chinese components as the chip war continues”, “Tech Monitor”, apparently a portal from the UK, wrote on December 7. Business, or the US Chamber of Commerce more specifically, may actually brought forward some technial arguments that were hard to deny, given an existing supply chain of “older, less-powerful chips used in a wide range of electronics”.

But what Alan Estevez, US commerce under-secretary for industry and security, reportedly had to say to add to the business side of the discussion, doesn’t look encouraging:

“We are seeing better behaviour. Mofcom has been more forthcoming.”

Estevez reportedly also said that “it’s not the first time we’ve seen such a change in attitude, so it depends on how long that is sustained”.
That’s easy to predict: as long as China remains dependent on cooperation with the West – and it would be surprising if Estevez wasn’t aware of that. And after that, the “wolf warrior diplomats” – or worse – will be back.

Meantime, the Netherlands and Japan appear to be coming around to America’s chip policies on China. While there have apparently been accusations against Washington of “strong-arm” policies and disregard for (Japanese) sovereignty. Resistence would probably have been futile, because U.S. technology is virtually everywhere across semiconductor supply chains, the United States has the power to authorize or block sales extraterritorially, a signed article published by “The Diplomat” said on Tuesday.

Meantime, China has sent technology scouts to Europe again, after a long Covid-caused ice age. But while travel restrictions are receding, the emissaries have encountered a colder atmosphere than what they had been used to, writes “Neue Zürcher Zeitung”‘s (NZZ)  tech correspondent. China is in dire need of a technological push, writes the correspondent, during the first nine month of 2022, GDP grew by only three per cent (according to official statistics) – “one of the lowest growth rates since Mao’s death in 1976”.

Success is imperative for China’s agents:  resolute prevention of a large-scale return of poverty (坚决防止出现规模性返贫) had to be carried out, a joint economic conference convened by the Central Committee of the Communist Party and the State Council, and led by Personality-in-Chief Xi Jinping, stated in its communiqué on December 17.

France and Germany appear to be important destinations for China’s technological sourcing – there may be no great chip industries there, but the business environment may be somewhat more welcoming than the Netherlands or Japan.

That said, one of the traveling tech scouts told NZZ that European interlocutors were “under pressure” when “cooperating with China”. Trying to explain his difficulties to his domestic audience on “WeChat”, he reportedly pointed to the many American military barracks in Germany.

"Enthusiastic reactions", CCTV, Dec 17, 2022

“Enthusiastic reactions”, CCTV, Dec 17, 2022

Meantime, people from all walks of life and nationalities are celebrating the economic work conference:

The Central Work Conference’s spirit has aroused enthusiastic reactions, and everyone says that we must unite our thought for common purpose, aggregate consensus, work industriously to get things done, put the party’s decisions and arrangements into place by taking practical aciton, make efforts to complete the objectives of economic and social development, and create a good starting point for the comprehensive construction of a socialist modern country.
中央经济工作会议精神在全国各地引起热烈反响,大家表示,要统一思想、凝聚共识、真抓实干,以实际行动把党中央决策部署落实到位,努力完成经济社会发展目标任务,为全面建设社会主义现代化国家开好局起好步。

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