The United States pushes the "Chip Act", which is aimed at China's electric vehicles
On August 9, US President Biden signed the "Chip and Science Act" (Chips and Science Act, referred to as the "Chip Act") into force, marking that this controversy is quite large and will even bring huge changes to the global semiconductor and electric vehicle industries. The tearing act officially entered the stage of history.
The U.S. says the bill aims to revive U.S. scientific research and technological leadership to strengthen "Made in America" capabilities, including increasing semiconductor production, filling supply chain loopholes, and strengthening its own economy and energy security.
But in fact, this bill, which is full of its own protectionism and strongly xenophobic, will threaten key global industries and greatly restrict normal international investment and cooperation. Making a product or industry a geopolitical weapon is not only a serious violation of the laws of the market economy, but the final result is "shooting oneself in the foot".
The bill has obvious implications for China
The US Congressional Budget Office said that the "Chip Act" will provide US$52.7 billion in subsidies for US chip manufacturing, research and development and workforce development, give 25% investment tax incentives to companies setting up chip factories in the US, and allocate about US$200 billion to promote the United States. Scientific research and innovation in the fields of artificial intelligence and quantum computing in the next 10 years. A total of nearly $300 billion has been invested.
The US media described the bill as "the best weapon for the United States to compete in the 21st century." According to the requirements of the bill, 40% of the mineral materials used in batteries need to be mined and processed by countries with free trade agreements in the United States. The proportion will be increased to 50% by 2024, 80% by 2027, and 100% of battery components must be in North America by 2029. manufacture.
The bill is obviously aimed at China. At present, materials such as lithium, cobalt, graphite and nickel required for electric vehicle batteries all over the world mainly come from a few countries such as China, Russia, Australia, and Chile. Among them, Australia and Chile have free trade with the United States. Agreement, China, Russia and Congo are not included.
The European Union, Japan and South Korea have voiced opposition.
Commission spokeswoman Miriam Garcia Ferrer said the Chip Act violated the WTO's principles of fairness and non-discrimination, and the EU would urge the US to remove discriminatory provisions.
South Korea has urged the U.S. to ease requirements for local assembly of battery components and electric vehicles. Hyundai Motor, LG Energy, Samsung SDI and SK have all pressed South Korea's trade ministry, saying the chip bill would put South Korean auto and battery companies at a disadvantage in the U.S. auto market.
China's competitive advantage is very prominent
In response to the US "Chip Act", China's own strong technological advantages are still the biggest magic weapon to break through the siege. On the one hand, China's advantages in raw materials are at the forefront of the world. In recent years, China has invested a lot in technological innovation, constantly promoting the cost reduction of power batteries from the supply chain to technological innovation. Innovative breakthroughs are very beneficial to cost reduction, which is the key for enterprises to remain competitive in the industry competition.
On the other hand, the efficiency advantage also comes out on top. Compared with Japanese and Korean companies, Chinese companies have a very strong efficiency advantage in management, structure, corporate relations and the system and mechanism of the main business, which play a core advantage in the company's innovation, production expansion, cost reduction, research and development, and supporting facilities. The resulting production capacity, cost and R&D iterative advantages will be solidified into core competitiveness.
Such a competitive advantage makes China fully capable of introducing countermeasures. In fact, most countries that rely on the Chinese market, such as South Korea and Japan, are willing to develop closer economic and trade relations with China and further strengthen the industrial chain.
The so-called iron is still relying on its own strength. In response to the unfair and discriminatory behavior of the United States, what China can do is to continue to strengthen its own manufacturing and technological strength. In the current environment of economic globalization, the United States' trade protection measures often make it " "Industry under protection" continues to decline.
