Washington
According to a Post report, 200 Chinese companies are going to be put on the restricted trade list, which will include major companies supplying chip manufacturing equipment and materials.
The move could further complicate efforts to make China’s semiconductor industry self-reliant. Huawei Technologies and its associated chip manufacturing plants have also been targeted in this list. Huawei has been facing US sanctions since 2019. These new US sanctions can badly affect China’s chip supply chain. Venture capital and special gas suppliers
China’s Foreign Ministry spokesperson Mao Ning has strongly condemned these sanctions. He has termed these sanctions as unfair and said that these steps are harming US-China economic relations. The technical dispute between America and China has deepened. The purpose of these US sanctions is to prevent China from accessing advanced technologies, which can increase its military strength.
Under previous sanctions, the US had deprived China’s Artificial Intelligence (AI) industry of advanced chips and equipment from companies like Nvidia and ASML. Experts believe that this new step will be a major blow to China’s semiconductor industry.
This technological dispute is further intensifying the competition between the US and China, which could have a profound impact on the global semiconductor industry.
Mexico in dilemma
This plan by China puts Mexico in a dilemma, which has been made even worse by Trump’s threat on Monday. Trump has clearly said that he will impose 25% tariff on Mexican goods. The country already has a major car-manufacturing center and generally welcomes foreign investment because it provides employment. The opening of the plant by BYD, one of the world’s largest electric vehicle manufacturers, would generally be considered a major achievement. But Mexican officials fear BYD’s plant will send the wrong message to Trump and his business advisers.
China is looking for the back door
Mexican officials feel that if a Chinese company comes to them, the US administration will feel that Mexico wants to become a back door for Chinese companies to enter the US market. This situation seems even more serious because Mexico is already the target of America regarding illegal immigration and drugs.
