China isn't very happy with Taiwan's latest round of export restrictions on Chinese entities, and Beijing has now "promised" to retaliate.
China Claims That Taiwan's Export Control Measures Won't Do Much To Huawei & SMIC, Saying That Beijing Will Respond
Well, geopolitical tensions seem to have transitioned to a technological front. With the US-China tech fight apparently widening, Taiwan has previously stepped in with a new round of restrictions on major Chinese firms, notably Huawei and SMIC. It marked the first time that Taiwanese officials have implemented measures against Chinese organizations, and most importantly, targeted those who have a deep-rooted involvement with Taiwan's tech industry. In a new report by Bloomberg, it is claimed that Beijing is set to respond to Taiwan's new export controls, calling the measure an allegiance to the Trump administration.
We will take forceful measures to resolutely safeguard the normal order of cross-strait economic and trade exchange. Attempts to decouple will not delay the progress of industrial upgrading on the mainland.
- Zhu Fenglian, Taiwan Affairs Office
According to the report, Chinese firms like Huawei and SMIC would now require an export license to do business in Taiwan, which would likely undermine their ability to access Taiwan's chip plants to build AI chips. This move was part of a broader plan by President Trump to limit China's technological progress. Since Taiwan is the "manufacturing hub" of the world, the restrictions on Chinese companies would affect business, and the license would require them to be more transparent about their operations in Taiwan.
It is uncertain for now about how China is going to retaliate against those measures, but Beijing does see these restrictions as an act of Taiwan siding with the US government in their stance, so hostilities are going to increase. Chinese firms are under strict scrutiny by the Trump administration, and, interestingly, the US has declared the use of Huawei's AI chips by other nations as a violation of export controls, suggesting that the American government is ready to thwart the expansion of China's AI tech towards the global world.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
Follow Wccftech on Google to get more of our news coverage in your feeds.
