Washington Can’t Beat Chinese Tech

On June 3, U.S. President Joe Biden signed an executive order blacklisting 59 Chinese companies, including Huawei, Semiconductor Manufacturing International Corporation and the China Aerospace Science and Technology Corporation, using the reasoning of "responding to the threat of China's military industry."* The order prohibits Americans from investing in the listed companies. The order will take effect on Aug. 2. The Wall Street Journal commented that "the action is one of the firmest to date" taken by the Biden administration amid a broad review of China policy.

Senior U.S. and Chinese economic officials had just made two calls to fully resume communication. Just when the international community had not yet fully digested the news, Washington has struck at China again, giving us more insight into the complexity of U.S.-China relations and Washington's paranoid attitude toward suppressing China's development. One impression that Chinese society has of the U.S. has been repeatedly proven by the facts: No matter who owns the White House, there are only superficial changes in U.S. strategy toward China and an increase in aggression in some areas. One other realization has been constantly reinforced: The Chinese must drop the wishful thinking and strengthen themselves.

This "blacklist" is version 2.0 of the "Chinese Communist Party military-related enterprises" list created during the Trump administration. It should be noted that the list was introduced after Donald Trump's election loss last year, and the circumstances at the time dictated that it was an arbitrary and politically motivated ad hoc move. In fact, this list immediately sparked chaos in the United States when it came out.

For example, the New York Stock Exchange first delisted the three major Chinese telecom operators, then revoked the order, and finally delisted them again. Turning back and forth in such a short period of time is not at all how a mature market should act. The fact that Xiaomi and Basket Technology won the case and were removed from the "blacklist" in the first instance also proves that the "list" lacks a legal basis.

Such a damaging "blacklist" should have been abolished when Washington was stabilizing its political footing, but the Biden administration did not do this. Instead, it intensified its efforts by creating a version 2.0. First, the number of Chinese companies and entities involved has increased from 48 to 59; second, the scope of the executive order has also been expanded, prohibiting U.S. investors from buying the securities of listed Chinese companies, but also from investing in the funds of these companies; third, the enforcement department has been changed from the Department of Defense to the Department of the Treasury. In addition, the new ban also claims to add the considerations of "democracy" and "human rights." Overall, the new ban is easier to implement and is more severe in nature. It seems that the Biden administration lacks the courage and ability to break free of the confines of populism toward China, or simply does not have the will to do so.

Many of the blacklisted companies have nothing to do with the military industry, which means that this is just one of Washington's gimmicks. It is a normal economic activity between countries and enterprises, but Washington is looking at the economy out of the context of the economy, making economic issues a security, political and ideological issue without any bottom line, abusing state power, undermining market rules and order, and suppressing and restricting Chinese enterprises by any means. Why do they do this? In fact, we all understand that Washington just wants to bring down these outstanding Chinese companies with strong integrated strength in science and technology.

One thing is certain: Washington is unlikely to achieve this goal. The U.S. has been suppressing China's technological development for a while, but instead of slowing down, Chinese technology is only getting stronger and stronger. This is first of all because Chinese technology has been based on independent research and development from the very beginning, thus gaining a strong ability to survive and develop. Second, because this suppression from the U.S. is fundamentally against the laws of the market, and lacks international morality, its force is limited and unsustainable.

To a certain extent, it can be said that the reason why the U.S. has resorted to improper competition is a type of expression of its lack of confidence in proper competition. If the United States is willing to play with ideology, let it play by itself; eventually it will find that it is the one left out to dry, and also the one that suffers the biggest loss.

*Editor’s Note: This quote, though accurately translated, could not be verified.