Author: Peng Shengyu
According to Bloomberg, the U.S. government is asking the Dutch government to expand the prohibition of semiconductor manufacturing equipment. Previously, the Dutch lithography giant ASML has been unable to ship its most advanced EUV lithography tools to China, but Bloomberg quoted an insider as saying that the U.S. government hopes to expand the scope of restrictions to older DUV lithography equipment. These devices are necessary for semiconductor production, and ASML has a monopoly in this market.
A person familiar with the matter said that the United States is also trying to exert pressure on Japan in banning the sale of lithography machines in China, because Nikon of Japan has a small market share in the field of ARFI lithography machines. After the report was released, ASML’s shares fell by 7.2% and ASML’s American Depositary Receipts fell by 8.3%, the largest intraday decline since March 2020.
Americans never worry about our retaliation when they move China, but we always worry about retaliation when we move them. Apple mobile phone has completely felt that there is no story between China and the United States in China in recent years. China dare not even touch apple.
Which American company has China sanctioned in recent years?
We have to ask a rhetorical question: are we only protesting?
In the face of these 611 sanctioned entities, do we need to take actions other than protests? Has our anti foreign sanctions law been used once?
Is our anti foreign sanctions law just for others to see?
Why haven’t we even touched an American enterprise?
In the area of mutual sanctions against enterprises of both sides, China is too inflexible to be even spineless. We have never dealt with an American enterprise that is full of food in China. In recent years, Apple has been extremely comfortable in China because of the sanctions imposed by the United States on Huawei and many mobile phone related industries.
In the second half of 2021, apple publicly released the fourth quarter financial report of 2021. Apple’s total net sales in the fourth quarter of the fiscal quarter reached $83.36 billion, about 532.82 billion yuan. Compared with before, Apple’s market in China has further expanded. Apple’s total net sales increased by 29% in the fourth quarter of 2021. In addition, Apple’s fourth quarter net profit revenue increased by 62% year-on-year, and its revenue in China rose by 83% The net profit was US $20.551 billion.
Apple, which has made a lot of money, is also shifting its supply chain in China in line with the political requirements of the United States. But the transfer is a transfer. They still want to insist on selling China.
When the epidemic broke out in Shanghai this year, apple warned this year that if it did not move its supply chain out of China, it could bring losses of up to $8billion, which was equivalent to losing iPad revenue for a whole quarter. Industry analysts pointed out that the technology giant should move more production lines out of China and establish its own assembly supply chain. Bloomberg analyst mark gulman (May 1) wrote that although Apple Inc. claimed that its supply chain was global, even after disassembling the iphone13, it was found that none of the core components were made in China and could not be changed, but it was still “extremely” dependent on China in terms of assembly and manufacturing. This relationship continued to haunt companies, investors and consumers during the pandemic. “Apple products are mainly assembled in China, which has brought headache problems in recent years, including the supply chain difficulties in the recent quarter,” gulman wrote. “This technology giant should immediately expand rapidly in other regions.” Gulman pointed out that Apple has obtained many components from the United States, India, Vietnam, Japan and other parts of the world, but the real problem lies in assembly, that is, the final assembly, testing and packaging program called “FATP”, which is still mainly completed in China. In Foxconn, China, after a three-month trial period, the monthly salary of workers manufacturing iPhones is between 3000 and 5000 yuan. This is much lower than the minimum wage in the United States – $12.15 per hour in Wyoming. The final assembly work is low skilled for Americans, but it does not mean that they do not need brains. China has a large number of industrial workers with basic education. Gulman said that this business model was created by Tim Cook, CEO of apple, because the company hopes to take advantage of China’s low labor costs and supportive policies. He added that this would also help to expand the Chinese market, and that the finished products assembled from other countries would be sold to China, requiring additional tariffs.
In order to cooperate with the U.S. government to suppress Chinese science and technology enterprises – of course, the U.S. government suppressed Chinese science and technology enterprises, apple is an out and out beneficiary. Apple began to tear down bridges. Since 2018, more than 40 Chinese enterprises have been kicked out of the supplier list by apple. Since 2021, Apple has begun to intensify its efforts, implement the complete de Chinalization strategy, and kicked Chinese enterprises out of the supplier list, with an increasingly rapid pace, The means are more and more ruthless, and the will is more and more firm. Recently, even oufeiguang and BOE have been kicked out of the supplier list by apple.
Apple is at the upstream of the industrial chain ecosystem and does its best to squeeze. Although Apple accounts for more than half of the profits of the mobile phone industry, apple suppliers are living a miserable life with meager profits, extremely bleak, like walking on thin ice. They drink some leftovers and eat some cold roast – even so, cook continues to coerce Chinese suppliers to leave China and go to other countries for production, otherwise, Will be subjected to cruel business punishment!
In recent years, the United States has suppressed China, imposed various sanctions and actions, and there has never been any anti American burning of American goods in China, which is a very big problem.
A bunch of people are afraid of pushing the United States away. It’s too late to hold on to their thighs, let alone point to their anti American.
See a statistical summary list as of December 18, 2021. From March 22, 2018 to December 18, 2021, the U.S. government and its functional departments included a total of 611 Chinese companies, institutions and individuals in the entity list. It is often referred to as the trade blacklist of the Bureau of industry and security (BIS) of the U.S. Department of Commerce. Among them, 63 were included in the list of entities in 2018, 151 in 2019, 240 in 2020 and 157 in 2021 (as of December 18). The Bureau of industry and security of the U.S. Department of commerce uses the export administration regulations (ear) to control 611 Chinese entities, mainly involving three categories: one is universities and research institutions related to information technology, nuclear power, and defense and military industry; One is institutions and industrial companies related to national defense, military industry and aerospace technology; One is the technology industry entities related to communications, semiconductors, artificial intelligence, etc. These entities are all placed in the 10 categories of regulatory content of the ear.
What can China do in the face of the blockade and sanctions imposed on China’s core enterprises by the United States, which is a national behavior? Apart from protests, are we left with tolerance?
Cracking down on China’s leading enterprises is the core idea of the United States to curb China’s development. The United States restricts China’s development, and the containment of China’s core enterprises is the most important way. The United States knows that the development of any country is driven by a large number of leading enterprises. Cracking down on the development of leading enterprises in China can have an excellent intention of cracking down on the development of all fields in China.
And what can we do as the attacked party?
The author has always believed that the tolerance of the other party’s active attack behavior is the connivance of the other party’s active attack behavior, so that the other party can reap the effect of sanctions, which will only increase the other party’s determination and action of firm sanctions. If China cannot let the other side pay the price because of sanctions, it is conniving at the other side, encouraging the other side, helping the other side improve its confidence in sanctions, and helping the other side firm its determination to take the next step in sanctions.
Only in the defensive game, the other side’s door will never be under pressure, and the other side will never hesitate to attack us bravely. Only defense can never gain the other side’s convergence. Only by attacking, can the opponent reduce the attack. Any passivity will be a great connivance to the other party’s initiative.
We have to ask ourselves, which American enterprise has China sanctioned in recent years? We have to ask a rhetorical question: are we only protesting?
I have always advocated that China should be tough in both cooperation and struggle, and firmly play the two cards of cooperation and struggle. Now we must put struggle ahead of cooperation. Biden has been in power for one and a half years. We should recognize Biden’s background sufficiently. The “trump” in sheep’s clothing is the most appropriate description of Biden. Let’s not be confused by what the United States says and does. We are confused by what it says. Let’s take chances on the United States. Let’s be timid and dare not deal with the real “do it” of the United States.
The United States “said a set” is to confuse us and make us have illusions about the United States; The true embodiment of the United States is what the United States has done. China cannot be stupid enough to be “said one thing and done another”.
The effective way for the United States to respect China is to play the two cards of “communicative interests and hostile interests”. To fundamentally improve Sino US relations, to make the United States respect China and let the United States take the initiative to stop all kinds of repression against China, the core depends on interest checks and balances and attacks. The key way is to use “revolutionary hands” to deal with “counter revolutionary hands”, as Chairman Mao said.
First, cooperation that enables the United States to give up the interests of exchanges with China. China cannot cooperate with the United States unconditionally. It should use cooperation as a weight to ask the United States to reduce pressure. The accelerated growth and strengthening of China’s own economic volume in the future will be the basis for the United States to have more demands on China than on the United States.
Second, the struggle of this struggle, resolutely counterattack and stop the interests of the United States and China. We must allow the United States to reap little benefit from its evil deeds against China and lose even greater benefits. For example, in the case of the United States’ crackdown on Huawei, China can not only reduce the loss of interests of Chinese companies in various ways, but also ensure that American companies lose more interests for this, so that the gains outweigh the losses, and work out an account with little gain and too much loss from the crackdown.
In terms of “cooperation” and “struggle”, China should have both hands and efforts to let the United States know that “the interests of exchanges cannot be lost, and the interests of evil relations do not count”, so as to force the United States to lower its arrogant head and make a practical and rational choice.
But today, we have been sanctioned against 611 major entities. Have we made the United States pay hostile interests? So far, I haven’t seen it. If we didn’t let the other party pay and lose anything because of sanctions against China, which is 611 major entities, we didn’t make the other party gain little benefits, and we didn’t make the other party lose more benefits, then we simply didn’t have the interests of resolutely fighting back and stopping the hostile relationship between the United States and China. If we do not attack each other’s interests of being hostile to China, then the other party will only gain and have no loss. This is the greatest connivance and encouragement to the U.S. sanctions against Chinese entities.
We can’t have any illusions about the United States and other western countries. The people’s daily is saying “we should carry forward the spirit of struggle and enhance our fighting skills”. In the face of the long list of 611 entities that the United States has imposed sanctions on China, where is our fighting spirit? Where are our fighting skills? Where are our fighting behaviors?
According to British media reports on February 22, 2021, the 5g variant launched by iPhone made apple rank first among the global smartphone manufacturers for the first time in five years, offsetting the overall slowdown in mobile phone sales during the epidemic. According to research firm Gartner, Apple sold nearly 80million mobile phones in the fourth quarter of 2020 after the launch of iPhone 12, which is the first time since 2016 that it has surpassed Samsung to become the world’s largest smartphone manufacturer. The Financial Times reported that Huawei’s smartphone sales fell sharply. Due to the sanctions of the US government, its smartphone sales fell by 41% in the same period. Huawei fell to fifth place, lagging behind Chinese rivals Xiaomi and oppo, as U.S. restrictions on Google Apps affected its market share. This is the first time Huawei has fallen out of the top four since it surpassed blackberry and Sony in 2013. Huawei began to sell its low-end glory mobile phone brand in November 2020, and its sales fell to the third place in 2020, lagging behind apple, with annual sales falling by nearly a quarter. Annette Zimmerman, chief analyst at Gartner apple, said Apple’s fourth quarter sales rose 15%.
After years of precipitation, China’s smart phone industry has finally developed. However, seeing the situation at the right time, the United States suddenly blocked China’s chip, blocking the “neck” of China’s high-end smart phone industry, which seriously hit the development of China’s smart phone industry, especially the market share of Chinese brand high-end smart phones. If China lets it go, it is very likely that the market share that Chinese smart phone companies have worked hard for many years will be lost and destroyed by sanctions.
While the United States is blocking high-end chips from Huawei and other Chinese companies, letting apple of the United States sell smartphones with high-end chips in China is bound to hand over the market share of high-end chip smartphones in China, which is bound to hit China’s smartphone industry hard. If China’s smart phone industry is defeated due to this unfair competition, it will be unacceptable to China. Why haven’t we considered it? Decisively restricting the sale of Apple’s high-end chip smartphones in the United States is a self-defense move to protect China’s smartphone industry. Only by maintaining the “green hill” of China’s smartphone industry and its domestic market can we “burn firewood” in the future.
The state should dare to protect Chinese industries. When the industry was destroyed, we lost not only mobile phones, but also countless working families, countless associated industries and countless manufacturing capabilities. We cannot allow the United States to see this happen. We must do something.
Why can’t we ban the sale of Apple’s high-end chip smartphones in China? What chips the United States restricts to Chinese companies, China should restrict what chip mobile phones American companies sell in China. If we can’t obtain 7-nanometer chips, we can’t let Apple’s 7-nanometer and smaller chip mobile phones be sold in China.
In the face of the Dutch enterprise ASML cooperating with the United States to ban the sale of lithography machines to China, why has China never considered opening the anti foreign sanctions law to adjudicate ASML? Doesn’t the United States also need their lithography machines? Why don’t we try to stop ASML from selling lithography machines to the United States? Is it really impossible for us to do it? Or haven’t you tried at all? Can you do it? What we can’t get, let the United States can’t get, let everyone can’t get ideas must be there. If you don’t let me drink soup and I let you eat meat carefree, this idea can’t be and can’t be taken. Therefore, it is strongly suggested that China should not get the lithography machine, and the United States should not get the lithography machine of ASML. Only by moving their meat, can they compromise and allow us to drink soup.
80% of the chips in the United States come from Asian foundries such as TSMC and Samsung. The United States prohibits TSMC from OEM high-end chips to China. Why can’t we think about how to make TSMC and Samsung not OEM to the United States? Is it really impossible for us to do so, or have we never tried it? Samsung has a huge market in China. Have we ever asked Samsung not to OEM chips for the United States? TSMC has unlimited production for the United States, but it can’t produce for China. If China can’t make it listen to China, it can consider destroying its production for the United States.
The anti foreign sanctions law has been promulgated for some time, and we must use it. No, it will only become a joke.
We must think about how to systematically protect Chinese enterprises and how to accurately attack American enterprises.
A country is the scientific and technological progress and all aspects of national development driven by a large number of enterprise entities. If we let the current passivity continue, we will only lose and gain nothing. Forbearance is a kind of inaction.
If we continue to connive at the sanctions imposed by the United States on Chinese enterprises and entities, while the other party’s enterprises enjoy unimpeded treatment in China, our industrial share and production capacity will also be greatly eroded and hollowed out.
The list of Chinese enterprises sanctioned by the United States will be longer and longer. Our sanctions against American enterprises cannot always be blank. From the beginning, let the list of American enterprises sanctioned by China gradually grow, so as to match the longer and longer list of enterprises sanctioned by the other party. We don’t want to curb the scientific and technological progress of the United States, but to make the United States pay painful losses due to sanctions against Chinese business entities
I have always advocated that the status of the United States in China’s diplomacy and development should be significantly reduced.
We advocate opening to the outside world. Now we need to make a clear distinction between opening to the world and opening to the United States.
We cannot open to the United States and other enterprises without discrimination.
We should treat American enterprises in China differently from enterprises in other countries in the world.
We should make it clear that there are restrictions on opening up to the United States and as far as possible to other countries in the world.
We should lower the position of the United States in the future development and progress of China.
It’s time for China to change the state that it has been forbearing entities to be sanctioned. We can’t just forbear. It’s one thing not to make the other party feel pain, and it’s another thing not to try to make the other party feel pain. We should completely ban the sale of any apple products in China, and let Apple get out of China is the most necessary anti-U.S. reaction China should have.