China's Washington envoy warns of retaliation against further US tech curbs
China does not want a trade or tech war but will definitely respond if the United States imposes more curbs on its chip sector, China's ambassador to Washington said on Wednesday.
Ambassador Xie Feng told the Aspen Security Forum China did not shy away from competition, but the way it was defined by the United States was not fair. He highlighted existing U.S. prohibitions on Chinese imports of equipment to make advanced chips.
"This is like ... restricting the other side to wear outdated swimwear in a swimming contest, while you yourself (are) wearing a Speedo," he said.
Xie referred to reports that Washington is considering an outbound investment review mechanism, and further prohibition on the export of AI chips to China.
"The Chinese government cannot simply sit idly by. There's a Chinese saying that we will not ... make provocations, but we will not flinch from provocations," he said.
"China, definitely ... will make our response. But definitely it's not our hope to have a tit for tat. We don't want ... a trade war, technological war, we want to say goodbye to the Iron Curtain as well as the Silicon Curtain."
The Biden administration has been finalizing an executive order that would restrict certain investment in sectors including advanced semiconductors, quantum computing and artificial intelligence, and a senior administration official said the aim was to wrap up reviews of it by Labor Day.
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