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China Warns US MATCH Act Threatens Global Semiconductor Supply Chain, Pledges Countermeasures

China's Ministry of Commerce warns the proposed US MATCH Act would disrupt global semiconductor supply chains and vows to protect Chinese enterprises with countermeasures.

Elena Voss/3 min/GB

Business & Markets Editor

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China Warns US MATCH Act Threatens Global Semiconductor Supply Chain, Pledges Countermeasures
Source: GlobaltimesOriginal source

China warns that the proposed US Multilateral Alignment of Technology Controls on Hardware (MATCH) Act threatens global semiconductor supply chain stability and international trade, pledging countermeasures to protect its businesses.

The US House Committee on Foreign Affairs recently passed the Multilateral Alignment of Technology Controls on Hardware (MATCH) Act. This proposed legislation aims to prevent the Chinese military from accessing advanced semiconductors, which are microchips critical for all modern electronic devices and advanced computing. Supporters of the bill state it also ensures continued US leadership in the "AI Arms Race," a competitive pursuit for dominance in artificial intelligence technology development.

China consistently opposes actions that overstretch national security justifications and abuse export control measures. The Ministry of Commerce of China (MOFCOM) has stated that enacting the MATCH Act would severely disrupt the international economic and trade order. MOFCOM further warned that such a bill would seriously undermine the stability of the global semiconductor industry and its supply chain. China will closely monitor the legislation's progress and carefully assess its impact on Chinese interests. The nation pledges to take all necessary measures to firmly safeguard the legitimate and lawful rights of Chinese enterprises.

The proposed US legislation signals an intensification of competition in critical technology sectors. Its potential enactment could compel companies worldwide to re-evaluate their supply chain strategies and international trade agreements. This situation may lead to increased trade friction between the world's two largest economies. The global electronics industry relies heavily on an interconnected semiconductor supply chain, making any significant disruption impactful across numerous sectors.

Observers should track the MATCH Act's progression through the US legislative process and any specific countermeasures China announces to protect its technology sector.

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