Chinese President Xi Jinping has called for countries to unbundle and end disruptions in supply chains in a speech to Shanghai Cooperation Organization leaders after imposing export restrictions on two metals used in chip and electronics making.
Chinese leader Xi Jinping has urged nations to refuse to separate and cut their supply chains, a day after his country imposed limits on exports of the two base metals used to make chips in response to Western restrictions on Beijing.
The world’s second-largest economy said in an online speech to leaders of the Shanghai Cooperation Organization that it wants to work with countries to “reject moves to put barriers, separate supply chains and breakouts”.
“We must grow the win-win cooperation cake and ensure that further development gains are shared more fairly by people around the world,” Xi said, according to the comment text released late Tuesday by the official Shinhua News Agency.
Remarks come after China’s export control on chip metals
The statements came after the Xi government’s decision on Monday to subject gallium and germanium, along with their chemical compounds, to export controls. China’s Ministry of Commerce said the move was aimed at protecting national security.Wei Jianguo, a former vice minister of commerce, said export controls on metals were “just the beginning” and that China would increase countermeasures if the US imposes further technology restrictions.
Wei told the state-run China Daily that he expects the export controls to take a heavy toll on some countries. It is evaluated that China’s move, which came just before the visit of US Treasury Secretary Janet Yellen to Beijing, may accelerate the efforts of countries to reduce dependency on the world’s second largest economy.
The United States has recently taken increasingly aggressive measures to largely limit China’s military advances and curb its technology ambitions, while trying to persuade its allies in Europe and Asia to do the same.
US prepares to restrict cloud service to Chinese companies
The US is currently preparing to restrict Chinese companies’ access to cloud computing services, including those provided by Amazon and Microsoft, the Wall Street Journal reported, citing knowledgeable sources.
The Washington administration is considering requiring cloud providers to obtain government permission before serving Chinese companies that use such platforms to train AI models, the WSJ reported.
The Beijing administration has previously criticized nations’ efforts to separate from China or their moves to mitigate their risks in China. Prime Minister Li Qiang warned last week that governments trying to politicize their economies will only tear the world apart.
“The invisible barriers that someone has set up in recent years are becoming more and more common, pushing the world to fragmentation and even conflict,” Li said.
Chinese Trade Minister Wang Wentao told former Japanese Foreign Minister Yohei Kono in Beijing on Tuesday that the two countries must work together to ensure their supply chains remain stable.