Commerce Ministry speaks out against US export controls

The United States' new export controls on advanced chip design software deviates from the principle of fair competition and violates international economic and trade rules, China's Ministry of Commerce said on Thursday.

The ministry's comments came after the US Department of Commerce issued a rule, without the standard regulatory delay, to impose restrictions on four emerging technologies including a specific type of electronic computer-aided design software that is vital to producing next-generation artificial intelligence chips. The rule took effect on Monday.

It will hinder international scientific and technological exchanges and economic and trade cooperation, as well as threaten the security and stability of the global industrial and supply chains, said Shu Jueting, the ministry's spokeswoman.

Against the backdrop of slowing global economic growth and high inflation, countries need to step up openness and cooperation, work together to foster an open, fair and non-discriminatory environment for scientific and technological development, promote global scientific and technological progress, and drive the steady growth of the world economy, she said.

Shu said the recently signed US Chips and Science Act of 2022, which offers incentives to US chipmakers, is a typical differentiated industrial support policy.

Some of these provisions restrict the normal economic, trade and investment activities of relevant companies in China. They are obviously discriminatory and seriously violate market laws and international economic and trade rules, according to the ministry.

They will distort the global semiconductor supply chain and disrupt international trade. China firmly opposes this move, she said.