Experts say China has no choice but to take some countermeasures against U.S. attempts to curb its rise, though they added that the world's two largest economies must avoid a downward spiral in relations because it would only hurt everyone.
This follows recent reports from the West that Chinese exports of gallium and germanium to the United States have fallen sharply after the United States has repeatedly taken steps to restrict China's electric vehicles, chips and biomedical industries. Gallium and germanium are two key chip-making minerals.
For example, the United States recently introduced a bill that would prohibit federal contracts with some Chinese biotech companies, including WuXi AppTec. WuXi AppTec is part of WuXi AppTec, which provides R&D and manufacturing services in the pharmaceutical and biotechnology industries.
WuXi AppTec's share price, which was listed in Shanghai last week, was hit by the news reports, which also raised concerns about broader unilateral sanctions imposed by the United States on Chinese high-tech companies.
Biden also recently said he "won't let China" dominate the EV market.
China's export controls on gallium and germanium are only for the protection of *** and interests, following the principles of international recognition and transparency," said Zhou Mi, a senior researcher at the China Academy of International Economic Cooperation affiliated with the Ministry of Commerce.
We have to take measures like the US bill because some countries curb our protectionist behavior in the development of the semiconductor industry, which brings uncertainty to the stability of the global semiconductor industry's ** chain. ”
He said that the recent U.S. moves targeting certain Chinese market players and China's emerging competitive industries have once again demonstrated its long-standing protectionism and double standard practices.
He added that the abuse of its power would create chaos and uncertainty in global cooperation, especially in the chip, electric vehicle and biotechnology industries, while damaging the reputation and standing of the United States itself in global ** and investment.
Zhang Yansheng, chief researcher at the China Center for International Economic Exchanges, said that if China wants to take-for-tat measures, export restrictions on critical minerals are convenient, because China is a major country in critical minerals, including rare earths.
But this will only cause more harm to everyone, China does not want to fight a ** war, it just wants to focus on its own development," he said.
He said that in the context of the United States' attempt to contain China's rise by restricting chip exports and restricting investment in high-tech fields, China has no choice but to take some countermeasures, which are rational and in line with international practice.
However, he said that disputes and frictions between the world's two largest economies in terms of technology and ** will only hurt each other and the global economy, causing countries such as South Korea and Japan to suffer from the impact on Chinese chip sales**.
If the United States continues to use *** as an excuse to contain China's scientific and technological development, the situation will only get worse," Zhang said.
"The two countries should sit down and resolve the dispute through open and honest negotiations, or at least try to prevent the situation from deteriorating further," he added. ”
China has imposed export restrictions on industrial products and materials containing gallium and germanium since August 1.
The Commerce Department said the implementation of export controls was a cautious and gentle move that did not target any particular country.
Tu Jian, assistant to the sales director of Qiandong Rare Earth Group, a private rare earth processing enterprise in Ganzhou, Jiangxi, said that he hopes that the market mechanism, rather than political factors, can dominate the world and bring benefits to the healthy development of the industry.