Although China’s response to the latest curbs was swift and seemingly strong, experts told Ars that China’s response to Biden’s last round of tariffs was relatively muted. It’s possible that this week’s ban on exports into the US could also be a response to President-elect Donald Trump’s threat to increase tariffs on all Chinese goods once he takes office.
Analysts warned Monday that new export curbs could end up hurting businesses in the US and allied nations while potentially doing very little to block China from accessing US tech. On Tuesday, four Chinese industry associations seemingly added fuel to the potential fire threatening US businesses by warning Chinese firms that purchasing US chips is “no longer safe,” Asia Financial reported.
Apparently, these groups would not say how or why the chips were unsafe, but the warning could hurt US chipmaking giants like Nvidia, AMD, and Intel, the financial industry publication closely monitoring China’s economy forecast said.
This was a “rare, coordinated move” by industry associations advising top firms in telecommunications, autos, semiconductors, and “the digital economy,” Asia Financial reported.
As US-China tensions escalate ahead of Trump’s next term, the tech industry has warned that any unpredictable rises in costs may end up spiking prices on popular consumer tech. With Trump angling to add a 35 percent tariff on all Chinese goods, that means average Americans could also end up harmed by the trade war, potentially soon paying significantly more for laptops, smartphones, and game consoles.
