Economic Security

As Biden and Xi Meet, Chinese Tech Threats Continue to Grow

Posted on by China Tech Threat
President Biden and Chinese President Xi Jinping will meet in San Francisco today. In the lead-up to the meeting, Treasury Secretary Janet Yellen said that the U.S. seeks “a pragmatic economic strategy: one that protects our vital national security interests while seeking a stable and healthy economic relationship.” It sounds wonderful. But the most pragmatic strategy is one that recognizes the extent to which China is threatening the U.S. through technology. If left unchecked, multiple ongoing Chinese efforts in the tech arena will continue to damage both American national security and prosperity. Begin with semiconductors. China has responded to the U.S. restrictions imposed on advanced chips (14nm and lower in node size) in October 2022 by subsidizing the production of… Read More

CTT-CPA “Ca$h Over Country” Report Exposes How Three U.S. Toolmakers Are Boosting Dangerous Chinese Legacy Chipmakers

Posted on by China Tech Threat
A new report co-authored by Coalition for a Prosperous America Chief Economist Jeff Ferry and CTT co-founder Roslyn Layton reveals how American semiconductor equipment manufacturing companies are earning billions from Chinese legacy chip manufacturers. That bad choice is undermining American national and economic security: American semiconductor equipment manufacturers (SEMs) have succeeded in lobbying the U.S. government to permit them to sell some of the world’s most complex technology to Chinese government-aligned firms making legacy chips. As can be documented from public data, American SEMs Applied Materials, KLA, and Lam Research have grown their combined revenues from China by 103% between 2018 and 2022. .kb-image_8d3de2-89 .kb-image-has-overlay:after{opacity:0.3;} The Department of Commerce’s mission is to foster economic growth, and also to prevent adversaries… Read More

National Security is Economic Security

Posted on by China Tech Threat
Last week, the White House released the much anticipated Executive Order on outbound investment. As Politico notably reported in a preview story, President Biden’s action will require “U.S. firms to notify the federal government if they invest in some lower-end semiconductor production not already covered by export controls.” This is a step in the right direction and comes as the Administration is starting to wake up to the threat of a China-dominated legacy chip market. But more needs to be done. .kb-image9510_bbe45b-0f.kb-image-is-ratio-size, .kb-image9510_bbe45b-0f .kb-image-is-ratio-size{max-width:372px;width:100%;}.wp-block-kadence-column .kt-inside-inner-col .kb-image9510_bbe45b-0f.kb-image-is-ratio-size, .wp-block-kadence-column .kt-inside-inner-col .kb-image9510_bbe45b-0f .kb-image-is-ratio-size{align-self:unset;}.kb-image9510_bbe45b-0f figure{max-width:372px;}.kb-image9510_bbe45b-0f .image-is-svg, .kb-image9510_bbe45b-0f .image-is-svg img{width:100%;}.kb-image9510_bbe45b-0f .kb-image-has-overlay:after{opacity:0.3;} Financial Times columnist Rana Foroohar reacted to the Executive Order in a piece aptly titled, “The US now accepts national and economic security can’t… Read More

House China Hawks Demand Commerce Department Protect U.S. Chip Sales

Posted on by China Tech Threat
Last month, Beijing announced retaliatory measures to counter the U.S.’s trade restrictions on Chinese chips. In response, leaders on the House Foreign Affairs Committee and Select Committee on China are demanding the administration ensure China can’t enforce it’s ban and calling on the Bureau of Industry and Security (BIS) to place CXMT on the Entity List. In a June 1 joint letter to Secretary Raimondo, Representatives McCaul and Gallagher wrote: “In response to the United States’ legitimate national security action, the CCP lashed out with an arbitrary economic embargo against one American company. Now, the United States must ensure that this economic aggression fails.” Regarding CMXT, they wrote: “ChangXin Memory Technologies’ (CXMT) products are widely understood to serve military and… Read More

Heritage Report Address China’s Aspirations of Tech Dominance, Part 1 of 2: Export Controls and Tariffs

Posted on by China Tech Threat
A landmark report out this week from the Heritage Foundation points the way forward on countering the most consequential strategic threat facing the U.S. in the 21st century: the Chinese Communist Party. The ultra-comprehensive report addresses the dangers emanating from the CCP across multiple domains, including national security, economic, and homeland security arenas. Helpfully, the report also offers prescriptions for fighting back against China’s hopes of dominating technological arenas. Today we release our summary – Part 1 of 2 – of some of the report’s major recommendations, beginning with export controls and tariffs to ensure U.S. leadership in semiconductors.  * * * Part 1 – The Crucial Importance of Semiconductors. “Semiconductors, also known as microchips, are omnipresent, critical to the… Read More