-2

In a briefing with reporters on Thursday previewing the rules, senior government officials said many of the rules sought to prevent foreign firms from selling advanced chips to China or supplying Chinese firms with tools to make their own advanced chips. They conceded, however, that they have not yet secured any promises that allied nations will implement similar measures and that discussions with those nations are ongoing.

https://archive.ph/LuLKc#selection-1219.0-1219.427

What can the U.S. do to convince its allies in Japan, Taiwan and South Korea to ban the selling of its chip making equipment to China? Is there any similar action taken by the United States in the past? I am thinking they would have to give them a large financial subsidy to make them recoup the tremendous loss in business they get from China. I just don't think this makes any sense whatsoever for a country like South Korea since most of their manufacturing is deeply embedded with China and they can't source their products from elsewhere without incurring tremendous losses.

3
  • I think the question is a little misunderstood. The only company that would sell chip producing technology is ASML in Holland. If the countries should sell it then they would have to sell what they use right now and therefore would be unable to produce chips themselves. (I think the countries mentioned in the question have only been asked not to sell chips, not chip producing equipment. And I have no idea how that would be enforced) Oct 9, 2022 at 15:36
  • related: politics.stackexchange.com/questions/74256/… politics.stackexchange.com/questions/70738/… The regime to do so would be COCOM's successor. But yes, not trading hi-tech then with USSR was a lot easier than would be now not trading hi-tech with China, no doubt. For financial volume and technical supply chain reasons. Oct 9, 2022 at 18:33
  • 2
    TBH I don't know why you expect this answer to be different than in the case of European companies, about which you asked a Q already. Oct 9, 2022 at 19:19

2 Answers 2

1

Threaten then by sanctions if they do. Why this should not work? Same approach that has been applied to ban selling technology and components to Russia.

1
  • The legendary quality of US diplomacy which will surely bring fruit.
    – alamar
    Oct 11, 2022 at 19:29
0

Japan exports 21% of their stuff to China and 18% to USA: Japan exports chart

Republic of Korea similarly exports 23% of their stuff to China and just 15% to USA: Korea exports chart

Taiwan exports 28% of their stuff to China and also 15% to USA: Taiwan exports chart

And that's even when we don't factor Hong Kong in. Maybe they're just not willing to piss off their largest trade partner, the PRC? Of course, all of these countries has special relations with the USA in the areas of defence, etc. That would perhaps make them choose USA if they absolutely had to take sides.

But the USA instead is asking (or pretending to ask) them to screw over their largest customer for no obvious gain. They prefer not to do it.

2
  • as an aside, it's pretty rare to see Taiwan called "Chinese Taipei" outside of gaming organizations (e.g. Olympics) where Taiwan is not allowed to participate under the name "Taiwan". I've never seen the term used in economic data before. I wonder what that means?
    – uhoh
    Oct 9, 2022 at 21:30
  • 1
    @uhoh Apparently, it's a shortened version of "Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu" - the name by which Taiwan is referred to in World Trade Organisation documents, so it makes sense to use it in economic data. The full one is a bit unwieldy. Oct 10, 2022 at 8:21

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .