And something has reached something. But: As before, China now spends more money on chip imports than oil imports (if thought, this is a very amazing fact). The last three generations of chips China can not do it yet. Therefore, to collect smartphones in China, you need to import chips for them. 90% of these chips are manufactured by TSMC in Taiwan. The rest is Samsung. Moreover, TSMC works completely "to order", that is, someone makes a chip design, and the company produces it. In huge quantities.
100% equipment to make such chips is produced by ASML in the Netherlands. Until now, American restrictions (they were introduced for Donald Trump) have worked as follows: the equipment for the production of the last generation of China cannot be imported. The rest of the equipment with the permission of the US Dept of Trade - that is, America knew what was being imported into China. And now US President Joe Biden hit all the barrels. Namely: 1.
China was banned from importing equipment not only for the last generations. Now it takes a very long time to bring something to the Celestial. 2. China has been banned from importing all chips used for artificial intelligence and Data Mining. 3. They decided to make a list of all companies that make the design and/or production of china in China. Obviously, in the future to be sanctioned by one blow. 4.
The most important thing, as everyone writes, is forbidden to all people who have citizenship or Green card of the United States, forbidden to work for Chinese companies in the Chip Industry. The last point is the strongest blow to China. Many talented Chinese studied and later worked in America. They graduated from the coolest universities (Stanford and Harvard) and then worked in advanced companies. Those who lived in America for a long time received citizenship.
Those who are smaller-everyone has a green card. And many of them have returned to China and work as topless or tops in Chinese companies. In addition, China turns out to invent hundreds of American engineers - who helped him catch up with America. In general, these are thousands of people who take the most important positions and work in China. They have already released - no one wants to risk their own American sanctions. Even China's Communist Party does not know what to do now.
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