Four Chinese industry associations call on companies to exercise caution when purchasing US chips after latest US export restrictions

Four Chinese industry associations voiced firm opposition on Tuesday to the US' most recent chip export control targeting Chinese enterprises. They called on relevant sectors to exercise caution when purchasing chips from the US.

The US government's arbitrary modification of trade rules has already caused substantial damage to the security and stability of the global semiconductor supply chain, the China Semiconductor Industry Association (CSIA) said on Tuesday in a statement.

CSIA expressed serious concern and strong opposition to the US move, the statement said.

In today's global economic integration, the unilateralism initiated by the US not only damages the interests of Chinese and American enterprises, but also greatly increases the cost of the global semiconductor supply chain, CSIA said.

As the US export control measures continue to increase, the backbite effect is also continuing to expand. The randomness of the US control measures targeting China has also caused supply chain disruptions and rising operating costs for US companies, affecting the stable supply of US chip products. US chip products are no longer safe and reliable, and relevant industries in China will have to exercise caution when purchasing US chips, the association stressed.

The US has once again undermined the long-standing consensus within the global semiconductor industry of fairness, reasonableness, and non-discrimination, while also undermined the principles of fair trade under the WTO, according to CSIA.

These actions also violate the spirit of the World Semiconductor Council (WSC) Charter, which is followed by semiconductor companies worldwide, and damage the efforts of the global semiconductor community to promote unity and cooperation, the association said.

China Association of Automotive Manufacturers (CAAM) said on Tuesday that the US's arbitrary changes to regulatory rules have severely impacted the stable supply of US-based chip products. Trust and confidence in purchasing chips from US companies are being undermined, as US-based automotive chip products no longer considered reliable or safe.

The CAAM advises Chinese automakers to exercise caution when procuring chips from the US to protect the stability and security of the automotive supply chain.

China Association of Communications Enterprises (CACE) stated on Tuesday that in order to ensure the security and stability of the industrial and supply chains of the information and communication industry, US chips should be purchased with caution, as the arbitrariness of US chip controls on China has affected the steady supply of US chip products.

CACE firmly opposed the US action, while calling on relevant Chinese enterprises to expand cooperation with chip enterprises in other countries and regions, and treat products produced in China by domestic and foreign enterprises equally.

The Internet Society of China (ISC) suggested on Tuesday domestic companies to purchase US chips with caution, seek greater cooperation with chip manufacturers from other countries and regions, and actively use chips produced by both domestic and foreign enterprises in China.

ISC stated that this approach aims to ensure the security, stability, and sustainable development of China's internet industry.

"China is not only an important market for the semiconductor sector, but also an important participant. The US chip restrictions will not only fail to achieve its objectives but also lead to the increase in uncertainty in the global supply chain," Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Tuesday.