China’s Reaction to US Export Controls on Semiconductors

Key Takeaways

• China has so far declined to impose retaliatory measures against US firms in response to export controls on semiconductors.
• Chinese industry and academic stakeholders are advocating for a broad range of measures to support China’s semiconductor sector.
• China is recalibrating its industrial policy framework to focus on research, talent, and education rather than costly and inefficient government guidance funds and subsidies.