As Donald Trump arrives in Beijing for a key summit with Xi Jinping, China is loudly criticizing a new US law targeting the semiconductor industry. The legislation, known as the MATCH Act, aims to tighten export controls on advanced chip-making equipment and has drawn sharp rebukes from Beijing. The timing suggests the move is connected to ongoing tensions over technology and trade between the two nations.

US Legislation Targets Chinese Tech Giants

The MATCH Act, currently progressing through Congress, specifically targets Chinese companies like Huawei, SMIC, and YMTC. It would ban the sale of certain semiconductor manufacturing tools, including deep-ultraviolet lithography systems, which are crucial for advanced chip production. The bill also requires Japan and the Netherlands to align their export controls with US rules within 150 days or face enforcement measures.

Many industry leaders see this legislation as a significant escalation. It could lead to substantial revenue losses for major equipment suppliers like ASML, Applied Materials, and Lam Research. For example, ASML anticipates its revenue from China could drop sharply if the bill becomes law, affecting the global semiconductor supply chain.

China’s Response and Countermeasures

China has already responded with its own measures aimed at protecting its chip industry. The government issued regulations authorizing legal action against companies that threaten Chinese supply chains. It has also imposed restrictions on the export of key raw materials like gallium and germanium, and mandated that domestic chipmakers source at least half of their equipment locally, risking billions in American sales.

The Chinese government views the US legislation as an attempt to block its technological progress and has warned it could disrupt global trade. Beijing is preparing a set of retaliatory policies, and the timing of the criticism suggests it aims to influence the upcoming summit discussions. The Chinese leadership appears willing to push back on US efforts to control the tech landscape, especially as tensions over trade and geopolitics remain high.

The summit between Trump and Xi is seen as a critical moment. While trade and diplomatic issues are on the agenda, the chip conflict adds an extra layer of complexity. Washington’s approach reflects a broader strategy to limit China’s access to cutting-edge technology, while Beijing seeks to safeguard its growing semiconductor ambitions. The outcome could shape global tech supply chains and diplomatic relations for years to come.

Inspired by

• https://thenextweb.com/news/china-match-act-chip-bill-beijing-summit

Sources

• house.gov
• globaltimes.cn