New US export rules deal "severe blow" to China's tech ambitions & UN says "no" to Xinjiang debate as Russia, China block consensus on N. Korea's missile launch over Japan -- China Boss 10.10.22
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New US export rules deal “severe blow” to China’s tech ambitions
“The US has introduced sweeping export controls that will severely complicate efforts by Chinese companies to develop cutting-edge technologies with military applications, in one of the toughest actions President Joe Biden has taken against China,” the Financial Times reported. “The controls mark a new attempt to decouple China from the US in cutting-edge technologies,” and “come days before the Chinese Communist party holds its 20th national congress at which President Xi Jinping is expected to seal a third term as leader,” news staff said.
According to FT's sources, the Biden Administration will put forward two restrictions: "The first is designed to stop China securing advanced chips for supercomputers and artificial intelligence applications," and the second will place "foreign countries on notice of being added to an export blacklist — known as the ‘entity list’ — if they do not co-operate with efforts to make sure they are engaging in ‘secure trade’ and not involved in violating other export controls.”
Analysts said China’s memory chipmakers, including YMTC and ChangXin Memory, would feel the most immediate blow.
“They are basically doomed,” said Mark Li, a semiconductor analyst at Bernstein in Hong Kong. “It will be very difficult for them to get the equipment they need.
The Washington Post said application of the US’ foreign direct product rule to companies “anywhere in the world” will prohibit them “from selling certain advanced computing chips to Chinese buyers without a U.S. government license if the companies use American technology to make the chips.”
Bloomberg Markets analysts Stephen Engle said broad application of the newly codified rules could “levy a severe blow to China's ambitions in the A.I. space and other supercomputing areas.”
But a semiconductor industry executive interviewed by FT “said questions remained about ‘how big a shot’ the Biden administration wanted to take.” “There’s a lot of different ways in which the borders [of technology] can be defined,” he said.
Reuters had previously reported that Biden’s use of the foreign direct product rule was just one facet of planned restrictions, as the Department of Commerce "intends to publish new regulations" that will also prohibit "exporting chip-making equipment to Chinese factories that produce advanced semiconductors with sub-14 nanometer processes unless the sellers obtain Commerce Department licenses." News staff had also said that “impos[ing] license requirements on shipments to China of products that contain the targeted chips” is likely to impact Dell Technologies, Hewlett Packard Enterprise and Super Micro Computer which use American technology to make data center servers in China.
For the latest FT’s report on the new regulations, US hits China with sweeping tech export controls, click here. For FT’s earlier coverage, US set to impose sweeping export controls to rein in Chinese chipmakers, click here. For WaPo’s update, U.S. crafting new rules aimed at curbing China’s advanced computing, click here.
To watch Bloomberg Markets coverage on YouTube, US to Announce New China Chip Limits, click here. For Reuters’ report, Exclusive: Biden to hit China with broader curbs on U.S. chip and tool exports -sources, click here.
Law and International Xi
UN says "no" to historic Xinjiang debate as Russia, China block consensus on N. Korea’s missile launch over Japan
“The UN Human Rights Council has narrowly voted against holding a debate on China’s conduct in the north-western Xinjiang region, blocking discussion of a UN report that found Beijing’s abuses against the Muslim Uyghur minority could constitute ‘crimes against humanity,’” the Financial Times reported. The Times described the vote as “a diplomatic victory for China,” tallying 19 council members who voted against holding discussions, with “17 countries in support and 11 abstentions.”
Financial Times:
Amnesty International called the outcome a “dismaying result that puts the UN’s main human rights body in the farcical position of ignoring the findings of the UN’s own human rights office”. “The UN human rights council has today failed the test to uphold its core mission,” Amnesty said.
Raphaël Viana David of the International Service for Human Rights said: “While, in recent years, the council has been able to scrutinise international crimes in Palestine, Ukraine or Myanmar, and to investigate systemic racism and police violence in the United States, council members sent today a dreadful message: China remains so far untouchable.”
Meanwhile, at an emergency meeting of the UN Security Council called to address North Korea’s missile launch over Japan, Russia and China blamed Pyongyang’s escalation on US “irresponsibility” and provocation. “North Korea’s missile flight Tuesday was its longest-range weapons test ever, a nuclear-capable ballistic missile that soared over Japan and had enough punch to reach the U.S. Pacific territory of Guam and beyond,” compelling Japanese authorities to “issue evacuation alerts and halt trains,” AP News said.
AP News:
Wednesday’s session ended with no agreement on next steps, despite warnings from the U.S. and its allies that the council’s inability to reach consensus on North Korea’s record number of missile launches this year was emboldening North Korea and undermining the authority of the United Nations’ most powerful body.
”This council should be mindful that it is being tested and its credibility is at stake. This council should act, and produce an action that restores its credibility,” said Hiroshi Minami, Japan’s deputy representative to the U.N. and one of those unsuccessfully urging the council back into its formerly unified stand over North Korea’s launches.
For the rest of FT’s report, UN human rights council blocks debate on China’s abuses in Xinjiang, click here. For The AP’s coverage of the emergency meeting at the UN Security Council, UN Security Council splits, again, over North Korea missiles, click here.
Geopolitics
“China has lost India” as a result of recent border conflict, expert says
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