A Counterproductive Approach? Experts and Officials Weigh In on the Potential Impact

A Counterproductive Approach

The Biden administration's recent trade restrictions targeting China have drawn criticism from both Chinese officials and experts, who argue that these measures will only motivate China to further strengthen its self-reliance and drive for technological innovation. They believe that Washington's heavy-handed approach is short-sighted and will backfire, heightening tensions between the two largest economies and jeopardizing global economic stability.

The Chinese Ministry of Commerce expressed strong dissatisfaction and firm opposition to the U.S. moves, citing concerns over national security as the reason for the restrictions. These actions include escalating export controls on semiconductors, restricting Chinese software and hardware in connected and autonomous vehicles in the U.S., and launching security probes into drone systems from China and other countries.

Experts believe that the Biden administration's eleventh-hour crackdown on China is driven by a desire to create a lasting anti-China policy framework that transcends party lines, hoping that the incoming Trump administration will maintain these suppressive measures. However, these measures have severely infringed upon the legitimate rights and interests of Chinese enterprises, disrupted market rules and the international economic and trade order, and threatened the stability of global industrial and supply chains, thereby harming the interests of businesses worldwide, including U.S. firms.

The Washington-based Semiconductor Industry Association has voiced its opposition to the Biden administration's plan to publish the "Export Control Framework for Artificial Intelligence Diffusion," citing concerns over the unprecedented scope and complexity of the potential regulation, which was developed without industry input and could significantly undercut U.S. leadership and competitiveness in semiconductor technology and advanced AI systems.

The Chinese government has stated that it will take necessary measures to resolutely safeguard its own sovereignty, security, and development interests in the face of U.S. suppression efforts. Experts believe that the U.S. should abandon its efforts to turn economic and technological issues into political weapons and instead respect market forces to maintain the security and stability of global industrial chains, which would better serve the common interests of China, the U.S., and the world at large.