Thomas des Garets Geddes
Thomas des Garets Geddes

@thomasdggeddes

12 Tweets 8 reads Feb 01, 2023
Important read by Peking Univ. scholar Lu Feng (路风) on the 🇺🇸-🇨🇳 #CHIP War.
▫️ "Since the #UnitedStates has used its ‘nuclear weapon’ [i.e. tech] against China, #China should strike back and use its own ‘nuclear weapon’ [i.e. its market]."
A SUMMARY:
sinification.substack.com
1⃣ The scope of the Washington’s #tech crackdown has always been constrained by the reliance of US companies on the Chinese market. Lu recommends further weaponising #Chinese demand.
2⃣ Beijing must stop pursuing individual technological targets and should come up with a comprehensive strategy aimed at developing an “independent industrial base” for #semiconductors.
3⃣ Chinese companies are already present in almost every part of the semiconductor #SupplyChain. The key for #China today is to help foster strong supply and demand links between these companies.
4⃣ Beijing should set up a body similar to the Mao era’s Central Special Committee [中央专委] that would directly oversee the development of this industrial base.
5⃣ #China must pursue “fully independent manufacturing” by first de-Americanising its #chip #supply chain and ultimately replacing almost all foreign made equipment and materials with domestically made ones. Decoupling is bad for everyone, but needs must.
6⃣ China should focus less on developing advanced chips and more on building up a domestic #industrial chain capable of producing mature chips (≥28nm).
7⃣ #China’s goal should be to become the world’s main supplier of mature chips and ultimately use this dominance as a weapon against the #UnitedStates and others (if and when necessary).
8⃣ Beijing should impose sanctions on any company that complies with the US’s #export controls. For example, by banning the sale of #NVIDIA's mature chips and of #ASML's less advanced lithography equipment to China.
9⃣ Lu is adamant that #China should implement strong countermeasures in response to the US’s current crackdown. Backing down will only make matters worse, he says.
▫️ Lu concludes: "It is time for #China to harden its fist and develop the ability to grab hold of the other side by the ‘throat’ [扼住对方的‘咽喉’的功力]. Only then will the other party acknowledge that we both belong to a ‘community with a shared future for mankind’."
Sinification is a free newsletter focusing on foreign affairs as viewed from #China. It aims to provide key insights from Chinese think-tank and academic circles on a range of international issues.
To subscribe:
sinification.substack.com

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