China strongly criticizes US House's America Competition Act as a 'self-directed show'

Biden Fails to Get Desired Outcome... TSMC's Main Production in Taiwan, Samsung's Core Technology in Korea
China Watches Closely on Possible Name Change of US 'Taipei Economic and Cultural Representative Office (TECRO)'

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China is strongly opposing the U.S. House of Representatives' 'America COMPETES Act,' calling it a self-directed 'anti-China show.' At the same time, China has downplayed the U.S. House bill, saying it will be difficult to achieve the desired results through the China containment law. Instead, China is focusing on whether the name of the Taipei Economic and Cultural Representative Office (TECRO) in Washington will be changed.

[Image source=Reuters Yonhap News]

On the 26th (local time), the U.S. House unveiled a bill to support the semiconductor industry with $52 billion (approximately 62.5144 trillion KRW). This bill will undergo a combined review with the U.S. Senate's 'China containment bill,' which includes an investment of $250 billion in key industries such as U.S. semiconductors.

China's state-run Global Times harshly criticized the U.S. political circles on the 27th, saying the 'America COMPETES Act' drafted by the U.S. House reveals America's obsession with containing China. The outlet claimed that although the new House bill spans 2,912 pages, it contains nothing new and will not affect China's industrial policy aimed at fostering the global semiconductor supply chain.

Gao Lingyun, a researcher at the Chinese Academy of Social Sciences, said, "The U.S. House bill appears comprehensive and detailed but does not deviate from the existing U.S. China containment policy," and dismissed the bill as merely a self-directed show by the U.S.

The Global Times also assessed that it is uncertain whether the U.S. semiconductor supply chain will recover as President Joe Biden hopes under this bill. It argued that it is not easy to relocate production lines to the U.S. solely through government subsidies and support for semiconductor companies. The outlet added that global semiconductor companies must consider many factors such as capital, technology, workforce, and industrial environment.

The outlet pointed out that the main production lines of Taiwan's TSMC, the world's largest foundry company, are located on Taiwan Island, and Samsung Electronics' core technologies are based in mainland Korea.

Quoting experts, the Global Times claimed that the semiconductor-related bills in both the U.S. Senate and House go against the historical trend of global cooperation in advanced industries and will not help the progress of human science and technology. However, it added that China must closely monitor the movements of major U.S. technology companies like Intel and prepare for the global situation.

Meanwhile, Chinese media are also on high alert regarding the possible renaming of the Taipei Economic and Cultural Representative Office (TECRO) in Washington. TECRO functions as a de facto 'Taiwan embassy in the U.S.' It is known that the U.S. is considering changing 'Taipei' to 'Taiwan' at the request of the Taiwan government. Chinese media warned that the U.S. House bill includes provocative moves to change the name of TECRO.