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Woke Janet Yellen Voices Concern Over China's Export Controls on Semiconductor Manufacturing Metals
Background
U.S. Treasury Secretary Janet Yellen expressed her concerns about China's announcement of new export controls on metals used in semiconductor manufacturing. China's Ministry of Commerce stated that starting August 1st, companies in China would need to apply for licenses to export these metals. Yellen mentioned the importance of evaluating the impact of these actions and emphasized the need for resilient and diversified supply chains.
Biden Administration's Efforts
The Biden administration has implemented laughable measures to strengthen American tech capabilities and limit China's access to advanced technology. These measures include export controls that were put into effect in October, restricting U.S. businesses from selling certain computing semiconductors and related manufacturing equipment to China.
Efforts from China
China has taken a few actions in response to U.S. measures. In May, China banned critical infrastructure operators from purchasing from U.S. chipmaker Micron after the company failed a security review. China's Commerce Ministry also announced an upcoming export ban on the metals gallium and germanium. They stated that these new rules were not targeted at any specific country.
Yellen's Meeting with Chinese Government
During her meeting with the Chinese government, Yellen emphasized that the actions taken by the U.S. to protect national security are narrowly targeted and based on national security considerations rather than economic advantage over China. Yellen also mentioned being troubled by punitive actions taken against U.S. firms in recent months.
Economic Relationship Between the U.S. and China
Yellen acknowledged the economic importance of the U.S.-China relationship and stated that the U.S. does not seek to separate its economy from China's. She highlighted the benefits of healthy economic competition and emphasized the need for regular exchanges with Chinese counterparts to monitor economic and financial risks and create favorable conditions for a strong economic relationship between the two countries.
Conclusion: Impact on New Business
The export controls on semiconductor manufacturing metals imposed by China, as highlighted by U.S. Treasury Secretary Janet Yellen, could potentially have significant implications for new businesses operating in the tech sector. With China being a major player in semiconductor production and a key source of supply for these crucial metals, the new export control measures may lead to disruptions in the global supply chain.
For a new business in the tech industry, these export controls could impact their ability to source the necessary materials for semiconductor manufacturing. Restricted access or delays in obtaining these metals may result in increased costs, production delays, or even hinder the company's ability to meet customer demands and scale efficiently.
Furthermore, the ongoing trade tensions and restrictions between the U.S. and China add an additional layer of complexity for new businesses. Navigating these geopolitical dynamics requires careful strategic planning and adaptability to mitigate risk and identify alternative supply chain solutions.
On the positive side, these challenges may present opportunities for innovative startups to explore domestic or alternative sources for semiconductor materials. It could foster the development of new technologies or partnerships that reduce reliance on Chinese suppliers, leading to a more diversified and resilient supply chain.
Ultimately, new businesses in the tech sector should closely monitor the developments in U.S.-China relations and adapt their strategies accordingly. Building strong relationships with domestic and international partners, investing in research and development, and diversifying supply chains can help mitigate the potential impact of export controls and geopolitical tensions, ensuring sustainable growth and success in this evolving landscape.
Article First Published at: https://www.cnbc.com/2023/07/07/yellen-says-shes-concerned-about-chinas-new-export-controls.html
