China advises US to consider chip rules

Tom Henry

china advises us to consider chip rules

China warns, others will say that it is a hidden threat, some will think that they are only testing the waters, but in any of the three cases the statement made by the China International Trade Council is a “warning to sailors” of what can happen. be the spark within a problem that is sprayed with gasoline everywhere. And of course, no one wants everything to burn, but the truth is that after the CHIPS Act regulations that we saw, to say the least, tensions between the US and China are very high. Why is China advising the US to carefully consider its chip rules?

Well, because the rules discussed almost a week ago are not suitable for Xi Jinping’s side, and as expected, the reactions have not taken long to come to the fore. China warns that if it continues down that path there will be many risks to take which, probably, the Biden Administration has already taken into account.

China warns US: ‘You must carefully consider what the CHIPS Act rules prohibit’


The message can be interpreted in many ways, but since it was not read, and therefore lacks tone, each reader will read what they want to interpret in their context. The message says like this:

“The China International Trade Council formally asks the United States to carefully consider rules that prohibit or restrict US investments in China’s technology sector”

In addition to this, and after the statement to the White House, China later released other accompanying statements from its camera:

“That not only creates transaction risks and compliance costs… but also damages the highly interdependent global industrial chain.”

What exactly were they referring to? Well, to an alleged “play” by Biden that would have been really well thought out before launching the regulatory rules for the CHIPS Act.

Is Biden playing a game of ambiguity by setting lax rules for chip investments?


Well, according to China and its state television, that is what they imply. Everything moves on a razor’s edge and statements and words are being measured to the millimeter. Not in vain, said official television of Xi Jinping’s Chinese party assures that The China Council for the Promotion of International Trade has supervised American regulations through the Ministry of Commerce.and have come to the conclusion that these establish “vague and broad restrictions” especially what investments and types of transactions entail.

In addition, they also say that they do not specify between military and civil purposes. In other words, China accuses the Biden Administration to be ambiguous and unclear about it. This may be a Biden strategy, where every investment case that passes through the White House from an American company to China could be denied for multiple reasons.

The CHIPS Act regulation seems to be something like the much talked about “it’s for national security.” It seems that everything falls into that spectrum and the justification does not need further explanation. This strategy makes sense if what you want is to de facto block all investment without having to give too many explanations, and furthermore, do it within the law.

Meanwhile, China has done the same with gallium and germanium, and there is speculation that more cuts and restrictions on minerals and other raw materials are coming. Is it one of Biden’s biggest blows to Xi Jinping?

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