Building “small yard, high fence” will eventually backfire on U.S.

By Zhong Sheng, People’s Daily

The latest high-end smartphone recently launched by Chinese tech giant Huawei Huawei has been attracting attention at home and abroad It demonstrates that China’s technological advancements cannot be hindered by U.S. sanctions.

However, the U.S. side remains stubborn, claiming that “the United States should continue on its course of a ‘small yard, high fence’ set of technology restrictions.”

The United States resorts to all means to suppress China’s technological progress, attempting to deprive China of its rights to development. This is a typical act of bullying.

Facts have proven and will continue to prove that America’s descending “technological iron curtain” and “small yard, high fence” approach cannot uphold its technological hegemony. Those who disrupt global sci-tech cooperation and undermine industrial and supply chains will ultimately suffer the consequences of their actions.

In recent years, the U.S. government has repeatedly imposed restrictions on China in the name of so-called national security, in an attempt to suppress China in the field of science and technology.

The U.S. side has claimed multiple times that the “small yard, high fence” approach is not aimed at a broader decoupling, and that areas outside the “small yard” will remain open to China.  However, its regulatory measures have continued to expand in scope and tighten in severity.

The United States has utilized its national power to enact the so-called “CHIPS and Science Act,” set up a semiconductor industry alliance with its allies and the “Chip 4 Alliance,” and issued executive orders for foreign investment reviews.

The country has repeatedly escalated its containment and suppression efforts, resulting in the inclusion of over 1,300 Chinese companies, institutions, and individuals on various sanction lists, even targeting Chinese social media applications. The true intention of the United States is to block China’s technological advancement and impede China’s development through technological decoupling.

The U.S. approach goes against the general trend of open cooperation in science and technology. The country overestimates its own capabilities and underestimates China’s determination to achieve technological innovation.

Looking back at history, China’s development has always been based on its own strength, from its early development in scientific and defense capabilities, to recent achievements in manned spaceflight, quantum communication, the BeiDou Navigation Satellite System, and chips.

Countless facts have already proven that restrictions and suppression can never stop China’s development, but only enhance its determination and ability to achieve self-reliance and technological innovation.

Today, China’s independent innovation capabilities have been greatly strengthened, and cutting-edge sci-tech outcomes continue to emerge. New industries and business forms, such as new energy and artificial intelligence, are flourishing.

In the face of blockades and suppression, China does not engage in self-isolation or self-seclusion, but instead strengthens international cooperation in sci-tech innovation in all aspects. It actively integrates into the global innovation network and enhances its own technological innovation capabilities through open cooperation.

Many international observers have pointed out that the countercurrent of decoupling cannot stop China’s innovation-driven pace.

Arbitrarily suppressing China’s technological development will not make the United States better, but will greatly weaken its global competitiveness.

China boasts the world’s largest semiconductor market, accounting for about one-third of global chip sales, which is the result of mutually beneficial cooperation between Chinese and foreign companies.

John Neuffer, president and CEO of the Semiconductor Industry Association, recently said that China is very important to the U.S. semiconductor industry, as it is an important part of the supply chain and a large customer base.

Forcing U.S. companies to stay away from the Chinese market not only harms the legitimate rights and interests of Chinese companies but also backfires on the United States itself.

According to an estimation by the Boston Consulting Group, U.S. companies could lose 18 percentage points of global share and 37 percent of their revenues, if the U.S. completely bans semiconductor companies from selling to Chinese customers, effectively causing a technology decoupling from China. These drops in revenue would inevitably lead to the loss of 15,000 to 40,000 highly skilled direct jobs in the US semiconductor industry.

An article in the U.S. magazine The National Interest pointed out that tightened restrictions on technology exports to China have reduced the income of U.S. semiconductor companies and jeopardized their research and development budgets.

The United States must accept fair competition if it wants to maintain global leadership in the high-tech industry. It should not use unscrupulous methods to maintain its technological supremacy, deprive other countries of their development rights, or disrupt the global industrial and supply chains for its own interests.

China does not shy away from or fear competition. However, China believes that competition should contribute to mutual promotion and common improvement, and it should be in line with the interests and expectations of both sides and the international community.

China firmly opposes any attempts to contain, suppress, or undermine under the guise of competition. China’s development goal is to continuously improve itself and enable the Chinese people to live a happier and better life. No one can deprive the Chinese people of their legitimate right to development.

Scientific and technological innovation is a symbol of human progress and should serve the international community. To truly play the role of scientific and technological innovation in promoting the progress of human civilization, all parties must demonstrate a broad vision and a sense of responsibility.

The U.S. insistence on descending the “technological iron curtain” will only blind itself; its insistence on building “small yard, high fence” will eventually trap itself. China will continue to follow the trend of open cooperation, and steadfastly promote high-level technological self-reliance and self-improvement.

(Zhong Sheng is a pen name often used by People’s Daily to express its views on foreign policy and international affairs.)