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In response to sweeping US chip curbs, China's restrictions on American
chipmaker Micron represent a significant escalation in its retaliation against
Washington's pressure. Analysts warn that while President Xi Jinping seeks to
assert China's position, economic realities constrain his ability to raise the
stakes. The ban on Micron's chips in critical infrastructure projects
signifies a landmark case, expanding cybersecurity reviews to include national
security concerns. As tensions grow, the broad definition of critical
information infrastructure raises concerns about potential protectionist
barriers.
China's move is seen as a tit-for-tat
retaliation, with the ban targeted at making a political statement. While
Micron's semiconductors can be replaced by South Korean suppliers, restrictions
against other US firms like Intel and Qualcomm pose greater challenges due to
their role in consumer goods manufacturing.
Beijing aims to bear some pain in contesting with the US while limiting costs
to itself, with the hope of switching to South Korean suppliers. However,
economic constraints and limited domestic capacity hinder China's ability to
fully match any shortfall in semiconductor imports. |
