China's Counter-Strategy to American Export Controls in Integrated Circuits.

This article examines China's efforts to counter American sanctions against Huawei that in effect try to weaponize the silicon supply chain. While China has taken tentative steps to try to decouple from the American semiconductor industry, it faces three continuing challenges. First, the areas of technological dependence that the Huawei Entity List sanctions highlighted, fabrication capital equipment and electronic design automation (EDA) software, are areas in which China has very weak capabilities. Second, the wider the scope of the sanctions is, the more likely local and foreign firms will be willing to cooperate with Chinese efforts to create substitutes for controlled American technologies. But the scope of the sanctions appears to be in stasis and may even narrow during the Biden administration. Finally, the progressive expansion of China's silicon ambitions has elicited foreign industrial policies to counter China's own policies. This expanding market outside of China will lessen the effectiveness of Chinese policy and at the same time make a certain level of controls over IC technology palatable to American partners as Chinese customers are replaced by others. [ABSTRACT FROM AUTHOR]