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US-China tech war
TechTech War

US and China set up semiconductor working group to ease tension in industry, improve supply chain security

  • The working group will conduct meetings every six months to keep each other updated about technology
  • The group will also work out policy proposals

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Engineers work at Xinguan Technology, a semiconductor high-tech enterprise in Dalian on April 1, 2019. Photo: Xinhua
Zhou Xin
The China Semiconductor Industry Association (CSIA), a state-backed association of 774 Chinese businesses in the chips industry, said on Thursday that it has set up a working group with United States technology companies to create an avenue for communication on issues such as “export controls, supply chain security”.
The launch of the working group came amid speculation that the administration of US President Joe Biden is likely to relax certain trade restrictions against Chinese semiconductor companies to ease a global shortage of chips, a move that could help Chinese firms, from Huawei Technologies to Shanghai-based Semiconductor Manufacturing International Corporation (SMIC).

SMIC’s shares in Hong Kong surged 10 per cent and gained 5.5 per cent in Shanghai on Thursday.

The working group is aimed at promoting “deeper mutual understanding and trust” between the Chinese and US semiconductor industries to solve concerns through dialogue and cooperation, the Chinese association said in a statement on its website. The counterpart of the Chinese association is the Washington-based Semiconductor Industry Association (SIA).

The working group, which will include 10 experts from both sides, will conduct meetings every six months to keep each other updated about technology and trade restrictions policies in Beijing and Washington DC and to work out policy proposals, according to the CSIA’s statement.

According to Washington-based SIA, the working group is about sharing public information regarding general trade matters, not easing export controls.

“SIA maintains regular dialogue with our industry counterparts around the world, including China, and this is part of that ongoing effort,” the group said. “SIA is committed to working with the US government on the shared goal of enhancing American semiconductor competitiveness while protecting national security.”

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