China Warns of 'Forceful Measures' as Taiwan Restricts Huawei, SMIC
China has warned of 'forceful measures' in response to Taiwan's export restrictions on Huawei and SMIC, escalating tensions in the global chip war. The move reflects growing frustration in Beijing with attempts to isolate Chinese tech companies.
Taiwan's unprecedented decision to blacklist the Chinese tech giants has drawn strong criticism from Beijing. Zhu Fenglian, spokeswoman for the Taiwan Affairs Office, labelled the move 'despicable' and accused Taiwanese President Lai Ching-te of loyalty to the US. The restrictions are set to cut off Huawei and SMIC's access to crucial plant construction technologies and materials from Taiwan, essential for building advanced AI chips.
The escalating tensions underscore the transformation of the global technology ecosystem along geopolitical lines. Western companies now face a more complex landscape, where commercial relationships are increasingly subject to political calculations. Both China and Taiwan, however, face economic vulnerabilities that may limit actual retaliation despite escalatory rhetoric.
The chip war tensions are set to continue, requiring Western tech companies to develop different strategies for navigating a fragmented global technology landscape. China's response reflects growing frustration with attempts to isolate Chinese technology companies, adding another layer of complexity to an already divided global technology supply chain.
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