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China Warns of Retaliation against U.S. Technology and Trade Restrictions

Ambassador Xie Feng, China's representative to the U.S., stated that while China does not seek a trade war with the U.S., it would retaliate against further American restrictions on technology and trade. He expressed criticism of the U.S. curbs on microchip and chipmaking equipment sales to China, a measure initiated by the Biden administration last year and deemed by Beijing as an effort to contain China's growth.

Xie condemned the U.S.'s approach to competition during the Aspen Security Forum on Wednesday. He stated, "The United States is trying to win by keeping China out," alluding to measures curtailing U.S. technology sales to Huawei due to security concerns. He compared these tactics to an unfair swimming contest where one side is outfitted with outdated equipment.

In what is widely seen as a counter-move, China placed export curbs on two metals crucial to computer chips and solar cells earlier this month. Furthermore, it restricted sales from Micron Inc., the top U.S. memory chip manufacturer, earlier this year.

Despite these retaliatory measures, Xie asserted, "We don't want a trade war, technological war. We want to say goodbye to the Iron Curtain, as well as the Silicon Curtain."

His remarks are set against the backdrop of strained Sino-American relations, with recent frictions over a suspected Chinese spy balloon over U.S. territory, disagreements over trade and technology, and disputes over human rights and territorial claims. However, attempts are underway to repair the relationship, with recent visits to Beijing by top U.S. officials, including John Kerry, Janet Yellen, and Antony Blinken.

Xie reiterated China's aspiration for a "stable, healthy relationship" with the U.S. and suggested immediate improvements such as increasing passenger flights between the two nations and renewing a cooperative science and technology agreement.

On the topic of the Ukraine war, Xie underscored China's respect for countries' sovereignty and territorial integrity while acknowledging "legitimate and reasonable security concerns." On the issue of Taiwan, he emphasized China's opposition to the upcoming U.S. visit of Taiwanese vice president and presidential front-runner William Lai.

So What Does This Mean?

Xie's remarks shed light on China's perspective on the U.S.-China trade war and its intention to retaliate if further restrictions are imposed. This adds another layer of complexity to the already strained bilateral relations.

The reiteration of China's desire for a stable relationship with the U.S. indicates an openness to dialogue and negotiation. How this will translate into practical steps remains to be seen, especially with unresolved issues like Taiwan and trade differences still causing friction.

China's position on the Ukraine war mirrors its broader foreign policy of respecting sovereignty but also recognizing security concerns, reflecting a careful balance as it continues its economic relationship with Russia while trying to avoid overtly taking sides in the conflict.

Lastly, the issue of Taiwan remains a major point of contention between China and the U.S. The anticipated visit of Taiwanese vice president William Lai to the U.S. is viewed by China as a potential provocation, and any related actions could escalate tensions further.

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A swimming contest? I don’t think equipment is the issue in swimming. You either got it or you don’t. China shouldn’t even start when it comes to denial of high tech. Dont even start with lithium and rare earth metals.



War is a game to many, chess, or ego, or something in between. Until the leaders who want or start the wars are placed on the front line, war is inevitable.

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