In this context, the CEO of “Nvidia” (the most valuable semiconductor company in the world), Jensen Huang, issued a series of warning messages on the impact of the escalation of the battle on chips between Washington and Beijing on American technology companies, in statements reported by the newspaper “Financial” British Times.
The warning messages came just days before Chinese authorities announced a ban on products from U.S. company Micron, which makes memory chips, from critical infrastructure, a step seen as the first big step. of retaliation against export controls in Washington. statements that:
The US tech industry stands to be badly damaged by this escalating battle. Export controls imposed by the Biden administration aimed at slowing Chinese chip manufacturing “left our hands tied behind our backs” and we were no longer able to sell advanced chips on any of the company’s largest markets. At the same time, Chinese companies have started to build their own chips to compete with the main “Nvidia” processors in the gaming, graphics and artificial intelligence market.
It should be noted here that Beijing has adopted – in light of the current trade war with the United States – a plan to inject investments worth $ 143 billion into the national chip industry to achieve the self-sufficiency in the face of American pressure.
The Chinese plan also includes “tax breaks and an incentive package for five years, as well as grants and loans to support semiconductor research and production.”
In context, the United States’ efforts in the context of besieging China in the chip sector and preventing it from procuring or developing advanced chips are seen as “a violent nexus in the new war cold between the two countries”.
California-based Nvidia has been barred from selling its most advanced chips to Chinese customers since August, when the United States imposed export controls on technology used in artificial intelligence. The company has also been forced to reconfigure some of its chips to comply with US rules that limit the performance of products sold in China. China accounted for more than a fifth of Nvidia’s sales last fiscal year, according to its annual report, while Taiwan accounted for more than a quarter.
slowing down China’s progress
For his part, the researcher in international relations and political economy, Abu Bakr El-Deeb, believes that “Beijing succeeded in defeating the United States in the war of microchips during almost 15 years of conflict, and after the States The United States of America has used all of its capabilities from the era of former President Obama until now to slow down China’s progress in the chip industry,” he said.
Al-Deeb explains, in statements to the Sky News Arabia Economy website, the importance that this conflict represents for the two countries, on the basis that chips are involved in the production of the most advanced industries, including aircraft. , cars, military equipment , weapons, as well as telephones, computers, etc., “noting that Beijing has succeeded.” Somehow relying on local investments to produce chips (..)”.
It should be noted here that the letters from the company’s Taiwanese-American CEO, “Nvidia”, included warnings to US lawmakers against “considering” imposing more rules restricting trade with China, and he said :
If we are deprived of the Chinese market, we have no other chance. “There is no other China, there is only one China”! There would be “enormous damage to American businesses” if they could not trade with Beijing. China represents almost a third of the market for the American technology industry and it would be impossible to replace it as a source of components and an end market for its products.
Returning to Al-Deeb’s speech, he points out at the same time that Washington used its economic power and its various commercial powers to deprive China and prevent it from this technology, but Beijing managed to create about 15 thousand local components , which has greatly benefited from it, the Chinese Huawei.
At the same time, he evokes the strategic plan launched by Beijing, at a cost of 143 billion dollars, which aims to develop the national chip industry in order to achieve self-sufficiency in semiconductors, in the face of the war. led by the United States. Beijing is counting on it for its victory in this war, at a time when the United States allocates 280 billion dollars to accelerate research and the manufacture of semiconductors.
The international relations and political economy researcher recalls the series of measures taken by the United States to besiege Beijing and prevent it from obtaining this technology, including:
Ban sales to China from foreign companies that use US equipment and technology, and prevent foreign companies from selling advanced semiconductors to Beijing or supplying them with tools to manufacture advanced chips. Impose sanctions on Chinese technology companies operating in the United States (including Huawei) and prevent them from selling 5G products to any country that the United States considers an ally, including in the military field.
impending Chinese supremacy
For his part, Hussein Ismail, expert on Chinese affairs, vice-president of the Arabic edition of China Today magazine, underlines in exclusive statements to “Sky News Arabia Economy” that Beijing still needs certain technologies at present. Western. , but it is in the short term, she can be very independent.
This is evidenced by the growing number of companies operating in chip manufacturing and the massive state support for these companies as part of China’s strategy to achieve self-sufficiency. As a result, he believes that “in the short term, not the long term, China will be able to overcome this hurdle of its need for chips from overseas.”
And he continues: “Contrary to this rapid growth and development of China, the United States of America is facing a marked slowdown in this area, especially in light of the measures related to the economic situation, which hinder the continuation of major development in the sector.”
At the same time, Ismail explains that the US ban on tech companies is causing great harm to US companies that are losing a market like China’s.
And as to whether this war has been “settled” in China’s favor based on the above, the China affairs expert explains, “It is uncertain whether the war is settled in Beijing’s favour, but at least Beijing has a big advantage in this area. sector, and other sectors and fields, as I learned from Beijing, for example, from Western technology in a number of fields until it reaches the same level and then develops it and surpasses it , such as high-speed trains.
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