China chip industry: US suppression, tech adv.
2024-09-08 Business Trend Analysis

Profitable business makes your profit

China chip industry: US suppression, tech adv.

Preface

With the rapid development of global technology, the presence of various high-tech products has permeated people's daily lives, and smartphones are among the most helpful products for people. However, did you know? The intelligence of a smartphone is dependent on the internal chips.

Previously, China's chip technology was in a relatively backward stage, so it has always chosen to import foreign chips, with more than half of the imported chip resources coming from the United States.

But as China's technology develops more and more rapidly, the hegemonic United States is trying every means to impose sanctions on China. But can the reality really be as the Americans wish?

Let's explore together the various "plots" of the Americans, and how China has overturned and proven its strength!

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The United States' Suppression of Chinese Chips

Since the founding of the nation in 1949, whether it is technology, medicine, or weapons and equipment, the development of various industries in our country has been far behind other countries, and it has always been seen as a weak nation in the eyes of Western countries.

Not to mention chips, at that time, China had only the advantage of a huge labor force, and the development of other industries was in a state of "everything is in ruins and needs to be rebuilt." Due to the slow initial development speed, domestic technology development often could not meet the huge domestic demand.

Therefore, it had to choose to import a large number of foreign products. For China's strong demand, those Western capitalists were, of course, very willing, after all, it is a money-making project, and who doesn't want to develop long-term.

Among them, American products have always been the top choice for our country's imports, such as brands like NVIDIA, Intel, Qualcomm, etc., which have long been leading the market share of Chinese chips.The United States, observing the vast demand in the Chinese market, has always been eager to cooperate with our country, supplying their products to many domestic enterprises in order to earn more profits. However, as the impact of reform and opening up grew, China's development accelerated, with many industries reaching a level where they could compete with the United States, and chip technology was also striving to catch up.

At that time, the United States was still in the excitement of making money from the Chinese market and could not imagine that soon after, the development of Chinese chip technology would no longer require the "support" of American capitalists. Before mastering chip technology, the rapid development of the U.S. economy seemed to owe the most to China, all of which stemmed from China's massive imports.

Yet, as China's development soared at a breakneck pace, even surpassing in many fields and becoming the world's second-largest power, the United States then realized that China's current development had exceeded their expectations. Fearing that their position as the "international leader" might be threatened, they immediately initiated measures specifically "targeting" China's development.

To suppress a country's development, one must first obstruct its economic growth, and the United States recognized the importance of this, launching various economic pressures against China. This included a direct ban on the import of chips, which China had long relied on from the United States, cutting off China's development. Although this had a significant impact on China, it also ignited the indomitable spirit of the Chinese people.

For China to continue developing and become a true powerhouse, it cannot rely entirely on the development of other countries; it must develop its own scientific research path. As a result, China's chip research reached an unprecedented pace, and with continuous technological advancements, China's own chips were finally developed, no longer needing to act at the behest of others.The Power of Chinese Chips

Initially, the development of Chinese chips was relatively aggressive. At that time, the technological gap with the United States was not very significant. Even though the U.S. was the industry leader, China's semiconductor technology had already approached the international mainstream level.

As everyone anticipated the steady progress of domestic semiconductor technology in China, it was expected that the reform and opening-up policy would add more glory. However, no one anticipated the downturn that followed.

Subsequently, advanced products from countries like the United States and Japan successively entered the Chinese market and quickly captured a large share, significantly squeezing out domestically developed products.

The lack of popularity and poor sales of products indicated that there was still room for development and upgrades. However, at this time, the domestic production side suddenly faced issues of introducing outdated technology and redundant production, resulting in products that lagged far behind foreign competitors.

This led to domestic enterprises beginning to import products from foreign companies, and the Chinese chip industry entered a period of depression, embarking on a difficult development journey.

But China has never been a country to give up easily. In the 1980s and 1990s, several R&D companies emerged in the country, focusing on the development of Chinese chips. However, as time progressed, these companies gradually faded away, all ending in failure.

After decades of failure, unexpectedly, the domestic chip technology showed potential to change the status quo in China.

As the nation had become accustomed to using foreign products and domestic products were gradually abandoned in people's choices, the United States also began to display its "performance," openly suppressing the development of Chinese enterprises.

In 2018, Huawei was subjected to frenzied suppression by American capital, which also caused many other state-owned enterprises to worry about potential future "attacks" from the United States.Thus, the domestic market's demand for domestically produced chips has been rapidly enhanced, and these chips are already prepared to enter the domestic market at any time. Even though the technology may not be as advanced as that of foreign products, the public's aversion to foreign products is gradually increasing, which also brings great confidence to domestic chip enterprises.

Due to the global chip industry being in a normal period of slow development, Chinese chips have the opportunity to develop vigorously, catch up with the international advanced level, and strive to surpass the technological level of American chips.

This progress is not without the efforts and support of countless researchers. Seeing the positive development of the domestic chip industry, researchers who had no choice but to stay in foreign companies are also returning to the embrace of their motherland one after another, contributing their fresh blood to the chip industry of their country.

With the joint efforts of the government, enterprises, and researchers, the most advanced chips belonging to the Chinese people are announced to the world, entering the international advanced level, and no one can casually underestimate China's development anymore.

The most noteworthy is Huawei's Kirin chip, a new type of chip that is completely researched and manufactured by China itself. In terms of both technology and performance, it can compete with foreign chips, and even surpass them.

However, the rapid development of Chinese domestic chips and the mastery of advanced chip technology are seen by the United States as a complete violation of its status as the "international big brother." Without hesitation, it seeks to suppress China.

In order to suppress China's development, the United States is "full of cunning." It openly refuses to export chips to China and joins forces with other regions in Asia to compete with Chinese chips.

But something unexpected happened: American chips suffered from severe unsold inventory, and their prices dropped rapidly. It is said that cheaper things will attract people to buy, but even when the price dropped to 90% of the previous price, it did not have any effect.

This is because the times have changed. China no longer needs the "support" of American chips and can be self-sufficient with its own capabilities.

This has also caused unprecedented blows to many American companies, and even their stock prices have suffered significant fluctuations. All of this may be attributed to the clever actions of the U.S. government.Seeing their own country's chip companies facing difficulties, the American media has the audacity to claim that the current situation has arisen because China is not buying American chips. Faced with such accusatory rhetoric, it seems that China has become accustomed to it.

Instead of focusing on developing and improving their own technology, they only know how to attribute all negative outcomes to others. It has to be said that the United States seems to only resort to such tactics.

In conclusion, China has never been a weak country that fears external oppression. In the face of external threats, it will only grow stronger, proving itself with strength.

The invisible smoke between China and the United States will increase over time. If the U.S. continues to view China with this mindset, China's development in the future will only get better and will surely surpass the United States, which has always occupied the position of the world's leading power.

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