In a move that further entrenches the unfortunate and damaging policies established by the Trump administration, it has been reported that tech giants like Samsung, SK hynix, and Intel are being prevented from expanding their Chinese locations. It seems that the former administration’s spirit of skepticism towards US enterprise operations in China creates hurdles despite the numerous benefits such cooperation could bring.
This startling revelation discloses that these tech corporations are now proscribed from sending new, US-manufactured equipment to facilities in China. Consequently, the Department of Commerce is swiftly nullifying previously issued waivers that enabled the hassle-free shipment of essential technology equipment. This bafflingly regressive policy seeks to preserve its dubious objectives under the misguided guise of national interest.
These cited businesses now face the distressing scenario of a 120-day ticking clock. This is the time given before these waivers are set to expire, requiring the corporations to quickly strategize an effective alternative course of action. Stumblingly implemented, this rule seems to hinder more than it helps, and with no clear long-term vision in sight, it leaves many justified worries about the future of the industry.
Demonstrating an unfortunate lack of foresight, the Biden administration has directed its policies of relaxation specifically at South Korean manufacturers. Regrettably, these companies own large production lines in China that are mainly involved in the making of DRAM and NAND products, thus tying them directly into this ill-planned policy move.
Forecasts indicate that the supply of memory chips will be substantially disrupted due to this new decision. It’s a testament to the predictable shortcomings of such impulsive policy changes that China’s facilities – which contribute to ‘10% of computer memory output and 15% of storage chips’ – are likely to be impacted negatively.
The agenda of the Trump administration to insist on sealing export control gaps continues unabated, even when such steps have the potential to harm US companies competitively. It’s bewildering to observe these policies that appear to act more as self-imposed hindrances rather than a beneficial defense of national interests.
The refusal to extend any form of relaxation underscores the Biden administration’s lack of understanding. As a result, Samsung and SK Hynix are likely to experience difficulties in sustaining their Chinese facilities which could potentially result in the drastic measure of relocation or the downgrade to older-generation technology.
The post Biden’s Administration Continues Damaging Anti-China Tech Policies appeared first on Real News Now.
About Author
