US Commerce Secretary Gina Raimondo announced that Chinese firms might be cut off from American equipment and software if they are found defying the restrictions imposed by the United States on exporting to Russia.
The US official said, in an interview with the New York Times, that the federal government could "essentially" shut down Semiconductor Manufacturing International Corp (SMIC) or any Chinese companies disobeying U.S. sanctions by continuing to supply chips and other advanced technology to Russia.
Reuters reported that Raimondo said if the federal government finds out that a company like SMIC goes on selling chips to Russia, the US could "essentially" shut the company down to "prevent them from using our equipment and our software."As of present writing, SMIC has not commented on the matter.
China Responds to Threat of US
On Wednesday, Chinese Foreign Ministery Spokesman Zhao Lijian said that China would "take all necessary measures" to purposefully "defend" the rights of Chinese individuals and companies, according to a report by Channel News Asia.
He also said during the media conference that the actions of the US and NATO had escalated the conflict between Russia and Ukraine to a "breaking point," urging America to consider China's concerns seriously.
Zhao also warned US officials not to compromise the country's rights or interests in dealing with the Ukraine crisis and relations with Russia.
China has declined to refer to Russia's attack on Ukraine as an invasion. Though it emphasized the promotion of dialogues between Russia and Ukraine to address the crisis, it rejects the economic sanctions imposed by the US and its allies in the West on Russia. China's Foreign Ministry has repeatedly stated that it goes against all unlawful unilateral sanctions.
Last week, when asked about the US and Western nations' sanction of kicking Russia out of the SWIFT banking system, Chinese Foreign Ministry Spokesperson Wang Wenbin said that Beijing"does not agree with resolving issues with sanctions, still less unilateral sanctions" which do not have enough basis of international law, per CNBC.
Later on, Wang said that sanctions will "only create serious difficulties to the economy and livelihood of relevant countries and further intensify division and confrontation."
The Impact of Russia-Ukraine Conflict on China
In recent years, rising trade tensions between the United States and China have intensified Beijing's efforts to boost ties with Europe. All of this is under jeopardy as a result of the Ukraine crisis.
Nick Marro, global trade leader at The Economist Intelligence Unit, said that China's attempt to quietly support Russia trying while maintaining relations with Europe is going to be more complicated and "has consequences for trade links, primarily with the EU."China, he said, is risking its reputation as it tries "to fudge its stance on Russia" and continues to criticize NATO and the US.
He underscored that China "was hoping to use the EU" as a means to ease the pressure imposed by the US.
"Right now, Europe sees Russia as an existential threat," Marro said, adding that as of the moment, the sanctions' impact on China is "secondary."
"This conflict raises bigger questions around industrial policy and China's diplomatic relations with the West," he noted.
