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www.reuters.com/breakingviews/chip-dilemma-will-buy-beiji...
Chip dilemma will buy Beijing precious time
The latest U.S. trade rules effectively make ultra-high-performance microprocessors used in supercomputers off limits to Chinese buyers; as are software and equipment required to make semiconductors above certain technological thresholds, including high-end memory chips from China’s YMTC.
Last year, Chinese imports of integrated circuits and related equipment topped $466 billion.
The outlook for China-dependent players in South Korea, Japan and the Netherlands is more uncertain. Memory giants Samsung Electronics (005930.KS) and SK Hynix (000660.KS) have factories inside the People's Republic and won’t be able to maintain them without a U.S. licence. Both have secured a one-year waiver from the restrictions, but what happens afterwards is unclear.
Washington policymakers are pressuring their Dutch and Japanese counterparts to also ban less sophisticated tools from ASML and Japanese peers. Both governments have agreed in principle to adopt “at least some” of the U.S restrictions, Bloomberg reported on Dec. 12. But the devil is in the details. Dutch Trade Minister Liesje Schreinemacher already said in November her government "will not copy the American measures one-to-one".
Curbs would be painful for the Veldhoven-based company: 2.7 billion euros, or 15% of total revenue, came from the People's Republic in 2021. Rival Nikon (7731.T) made sales of over 153 billion yen ($1.1 billion) in China, some 28% of total.
Slowing demand is another worry: Total chip sales will shrink 4% to $557 billion in 2023, a sharp reversal from the 26% growth in 2021, according to World Semiconductor Trade Statistics.
That will probably make companies wary of quickly and fully embracing Washington's requests. The hesitancy will play in China’s favour. It will buy it time to stockpile on foreign components and tools and help President Xi Jinping court trade partners. As Beijing knows, wars are seldom fought and won unilaterally.
www.japantimes.co.jp/news/2022/12/17/business/tech/china-...
Biden’s China tech crackdown leaves Xi with few ways to hit back
The U.S. has sharpened its assault on China’s technology industry with a flurry of export bans and stifling restrictions on companies, an escalation that leaves Beijing with few options to retaliate.
Washington’s moves are part of a longer-term strategy to prevent China from dominating the industries of the future and arming its military with advanced weaponry, while also securing its tech supply chain by enticing chipmakers to set up shop in the U.S..
President Joe Biden’s administration this week escalated those efforts to hobble its main geopolitical competitor, blacklisting dozens of Chinese tech firms, while signs emerged Japan and the Netherlands are aligning with U.S. restrictions on selling crucial chipmaking equipment to China, a major blow to Beijing’s ambitions to produce advanced semiconductors.
In response, China has accused the U.S. of protectionism, lodged a complaint with the World Trade Organization and courted chip-making powerhouse South Korea, a key U.S. ally. Beijing is also reportedly preparing a multibillion-dollar aid package for its semiconductor industry, a crucial sector for the global economy given the widespread use of chips in everything from cars and mobile phones to guided missiles.
But China doesn’t have many options, or incentives, to go further.
Similar to Beijing’s actions during the trade war with former President Donald Trump’s administration — when it failed to follow through on threats to add U.S. companies to a so-called unreliable entities list — any moves to block American investment threatens an economy already reeling from President Xi Jinping’s zero-tolerance COVID-19 policies, which are only now being rolled back.
"China’s lack of good options is precisely why the U.S. is striking hard and fast now with export controls,” said Reva Goujon, a director at the Rhodium Group who advises corporate clients on U.S.-China relations and industrial policies.
The tech battle comes as U.S.-China relations have eased since hitting a low point earlier this year following a visit to Taiwan by House Speaker Nancy Pelosi. After Biden and Xi met at the Group of 20 summit in Bali last month, the U.S. watered down a legislative proposal that would’ve named Taiwan a "major non-NATO ally,” a sign that Washington is trying to avoid another showdown that risks derailing the relationship.
The U.S. has "abused” export controls and import restrictions, while the new sanctions on Chinese companies "violate the commitment” that Biden made to Xi in Bali, Liu Pengyu, the spokesman for China’s embassy in Washington, said in a Friday briefing.
"From the U.S. side, they are now building walls and barriers, pushing for decoupling and severing supply chains,” Liu told reporters. "We call on the U.S. side to stop disrupting the trade of high-tech products and maintain normal China-U.S. economic and trade exchanges.”
Yet Beijing’s response to the recent U.S. moves on semiconductors has been "very reserved,” according to Henry Wang Huiyao, founder of the Center for China and Globalization, a policy research group in Beijing. The Biden-Xi talks and an upcoming visit to China by U.S. Secretary of State Antony Blinken have laid the groundwork for more understanding and hopefully some relaxation of sanctions, Wang added.
‘Major blow’
The new actions unveiled this week — which follow export controls announced in October aimed at preventing China’s access to machines and know-how to make high-end chips — placed a number of Chinese companies on a so-called entity list, requiring suppliers to get difficult-to-obtain U.S. government licenses.
Among the most notable firms on that list is emerging chip equipment-maker Shanghai Micro Electronics Equipment Group (SMEE), which could stifle Beijing’s efforts to create next-generation semiconductors. The machines that make semiconductors are among the most complicated devices produced by humans and defy reverse engineering, making it difficult for China to develop its own domestic capabilities if it can’t get the equipment elsewhere.
"Having SMEE on the entity list is a major blow for China’s chip sector,” said Martijn Rasser, a former analyst at the Central Intelligence Agency who’s now a senior fellow at the Center for a New American Security think tank.
"It’s the one company that Beijing saw as having potential to produce advanced chipmaking machines, which is essential for China to be a competitive force in the global semiconductor ecosystem,” he said. "Those hopes are now greatly diminished, if not dashed altogether.”
Courting allies
Under the Biden restrictions, China is severely limited in its ability to buy those chipmaking machines from abroad. The critical American gearmakers Applied Materials, Lam Research and KLA can no longer sell their advanced equipment to Chinese customers. But a complete blockade requires cooperation from Japan’s Tokyo Electron and Dutch lithography specialist ASML Holding.
Those U.S. efforts gathered momentum this week with Japan and the Netherlands nearing an agreement to join Washington in tightening controls over the export of up-to-date chipmaking machinery to China. The two governments are considering a ban on the sale of machinery capable of fabricating chips that are at least three generations behind the latest advances available on the market, in line with the rules Washington set out in October.
Also on the blacklist is China’s leading memory chipmaker, Yangtze Memory Technologies, which was once close to a deal to supply Apple, and is a competitor to Samsung Electronics and Micron Technology for mobile phone and personal computer components.
China response
Even if China wins the WTO case, the U.S. can veto any ruling by bringing it to the trade organization’s appellate body, which the Trump administration paralyzed in 2019.
China’s best option may be to pour money into developing its own high-tech chips. Beijing is preparing to unleash a $143 billion aid package for its chip industry, according to Reuters. But it’s not clear how much impact this will have, given the mixed results from the tens of billions that China has already funneled into the sector.
"They can invest more, but the issues right now are not really a lack of resources,” Adam Segal, chair in emerging technologies and national security at the Council on Foreign Relations. "It’s these technological chokepoints they are still vulnerable to.”
There’s a risk that unilateral actions could eventually alienate key U.S. partners, said Jon Bateman, a senior fellow at the Carnegie Endowment for International Peace. As well, Beijing hasn’t yet shown a willingness to leverage its dominance of rare earth minerals or its role as a manufacturing hub because it "has more to lose than to gain,” he said, but that could change.
"China has a lot of capability to retaliate but very limited willingness to do so thus far,” he said. "We may be surprised when that finally happens.”
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Single stack mag pouch (holds 3, poly or metal), molle attached. For info/orders email at: info@1811tactical.com
Baofeng UV-5 series of radios with extended battery. MOLLE compatible. For info/orders email at: info@1811tactical.com
Baofeng UV-5 series of radios with extended battery. MOLLE compatible. For info/orders email at: info@1811tactical.com
Baofeng UV-5 series of radios with extended battery. MOLLE compatible. For info/orders email at: info@1811tactical.com
MTR Equipment Repair For Maintenance Department (949)537-1008
Subject: Equipment Repair Services - MTR (Machine Tool Repair)
I hope this email finds you well. I wanted to introduce you to MTR (Machine Tool Repair), MTR is a company specializing in rebuilding and repairing various types of equipment. With our expertise and dedication, we offer top-notch services for:
Gear cutting
•Herringbone
•worm
•bevel
•sprocket
•Welders repair service
- Fire Pumps
-Stainless positive displacement Pumps
- Centrifuges
- Vacuum Pumps
- Diaphragm Pumps
- Control Valves,Air locks
- Boiler Feed Pumps
- Centrifugal Pumps
- Drum Motors
- Hydraulic Pumps
- Gearboxes
- Hydraulic Cylinders
- Drum Motors Van De Graaf
- Electric Motors
- Machinery and Equipment
- Cylinder Repair for Bobcats, Excavators, and Forklifts
- Pneumatic Equipment
- Jack Hammers, Post Drives, Tea Diggers, Missile Hammers
We understand the importance of prompt assistance, which is why we offer 24/7 emergency breakdown service. Our team is always ready to provide rush service repairs, and we have a fully equipped machine shop for gear cutting, welding, and machining.
Please feel free to contact us at your convenience to discuss your equipment repair needs. You can reach us at:
(800) 988-2724 or (949) 537-1008.
Additionally, you can visit our website at
mtrservice.com
for more information about our services.
Thank you for considering MTR for your equipment repair requirements. We look forward to the opportunity to serve you.
Best regards,
MTR
Machine Tool Repair
(800)988-2724
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MTR Equipment Repair For Maintenance Department (949)537-1008
Subject: Equipment Repair Services - MTR (Machine Tool Repair)
I hope this email finds you well. I wanted to introduce you to MTR (Machine Tool Repair), MTR is a company specializing in rebuilding and repairing various types of equipment. With our expertise and dedication, we offer top-notch services for:
Gear cutting
•Herringbone
•worm
•bevel
•sprocket
•Welders repair service
- Fire Pumps
-Stainless positive displacement Pumps
- Centrifuges
- Vacuum Pumps
- Diaphragm Pumps
- Control Valves,Air locks
- Boiler Feed Pumps
- Centrifugal Pumps
- Drum Motors
- Hydraulic Pumps
- Gearboxes
- Hydraulic Cylinders
- Drum Motors Van De Graaf
- Electric Motors
- Machinery and Equipment
- Cylinder Repair for Bobcats, Excavators, and Forklifts
- Pneumatic Equipment
- Jack Hammers, Post Drives, Tea Diggers, Missile Hammers
We understand the importance of prompt assistance, which is why we offer 24/7 emergency breakdown service. Our team is always ready to provide rush service repairs, and we have a fully equipped machine shop for gear cutting, welding, and machining.
Please feel free to contact us at your convenience to discuss your equipment repair needs. You can reach us at:
(800) 988-2724 or (949) 537-1008.
Additionally, you can visit our website at
mtrservice.com
for more information about our services.
Thank you for considering MTR for your equipment repair requirements. We look forward to the opportunity to serve you.
Best regards,
MTR
Machine Tool Repair
(800)988-2724
#gears #manufacturing #engineering #gearmanufacturing #gearmaker #gearboxes #gearsuppliers #engineeringtech #machinist #gearproduction #gearmachine #gearcuttingtools #wormgear #vacuumpump #Blowers #oilandgasindustry #marineindustry #miningindustry
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MTR Equipment Repair For Maintenance Department (949)537-1008
Subject: Equipment Repair Services - MTR (Machine Tool Repair)
I hope this email finds you well. I wanted to introduce you to MTR (Machine Tool Repair), MTR is a company specializing in rebuilding and repairing various types of equipment. With our expertise and dedication, we offer top-notch services for:
Gear cutting
•Herringbone
•worm
•bevel
•sprocket
•Welders repair service
- Fire Pumps
-Stainless positive displacement Pumps
- Centrifuges
- Vacuum Pumps
- Diaphragm Pumps
- Control Valves,Air locks
- Boiler Feed Pumps
- Centrifugal Pumps
- Drum Motors
- Hydraulic Pumps
- Gearboxes
- Hydraulic Cylinders
- Drum Motors Van De Graaf
- Electric Motors
- Machinery and Equipment
- Cylinder Repair for Bobcats, Excavators, and Forklifts
- Pneumatic Equipment
- Jack Hammers, Post Drives, Tea Diggers, Missile Hammers
We understand the importance of prompt assistance, which is why we offer 24/7 emergency breakdown service. Our team is always ready to provide rush service repairs, and we have a fully equipped machine shop for gear cutting, welding, and machining.
Please feel free to contact us at your convenience to discuss your equipment repair needs. You can reach us at:
(800) 988-2724 or (949) 537-1008.
Additionally, you can visit our website at
mtrservice.com
for more information about our services.
Thank you for considering MTR for your equipment repair requirements. We look forward to the opportunity to serve you.
Best regards,
MTR
Machine Tool Repair
(800)988-2724
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