
The war between the world’s two largest economies for dominance in high technology and, in particular, in processor technology is expanding, and the Washington camp is already to some extent swaying the EU to its side. and now to win anyway Japan’s ally. However, at the same time, China is regrouping its forces and preparing for a counteroffensive.
One day after the announcement of the Commission on the strategy to be followed by the EU. against China, to secure its interests, Japan has joined Washington in the common front that the US and Europe tend to form in a processor war. He announced that he was introducing restrictions on the export of equipment for the production of 23 types of microprocessors. The country that hosts some of the largest processor hardware manufacturers, such as Nikon and Tokyo Electron, did not specifically mention China as the target of its new policy, saying only that industries are now required to apply for a special export license for all countries indiscriminately. . However, as analysts note, the decision on the eve of the visit of the Japanese Foreign Minister to Beijing can be considered a victory for Washington, which announced large-scale restrictions on the export of processor technologies to China in October. Meanwhile, South Korea, under increasing pressure from Washington, is trying to develop its own manufacturing industry and this week passed a law that significantly increases the tax exemption rate for its industries that invest in this sector and its economy.
The Chairman of the Commission advocated a tough stance towards China and stressed that the EU needs to develop new protective mechanisms.
A day earlier, European Commission President Ursula von der Leyen advocated a tough stance on China and stressed that Europe can no longer harbor illusions about who China is today. He even stressed that the EU should develop new protective mechanisms and protect its interests, essentially following Washington’s policy towards China. At the risk of eventually deepening the gap between EU member states. whose views and interests diverge on China, Ms von der Leyen stressed that European policy towards China “requires enhanced coordination between Member States and European institutions.” In early March, the Netherlands decided to join Washington and ban the export of processor technologies to China, while in Germany the attitude to this issue is ambivalent, some political forces call for protecting the German economy from Chinese encroachment, and the German chancellor supports the acquisition of a container terminal in the port of Hamburg by the Chinese by Cosco Shipping Ports.
However, realizing Europe’s anti-China bias, Chinese Ambassador to the EU Fu Kong spoke of a growing “protectionist trend” in Europe and wondered “what sane person would turn down a growing market like China?” He then urged Europeans and European governments to “see what is in their own interest and resist growing US pressure” by developing “strategic autonomy”. He even specifically mentioned the Netherlands, noting that they “succumbed to US pressure” and decided to ban technology exports to China. However, at the same time, he warned the Netherlands that “they must bear in mind that China is not going to sit idle and watch its interests be undermined without any action.” A Chinese official even expressed hope that the EU leadership. will find “courage and political strength” to proceed with the ratification of the mutual investment agreement with China. The reason for the agreement reached by the two parties at the end of 2021, but not ratified after the EU exit. when Beijing imposed sanctions on some members of the European Parliament. In the meantime, however, China continues to strengthen its own processor industry, and YMTC plans to begin production at the new facility early next year. But above all, the industry in question has managed to become independent of American technology, since it has been testing processor equipment produced by Chinese industries for quite a long time, and at the same time it has captured a much larger share of the world’s memory. processor market.
Source: Kathimerini

Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.