Strengthening "Made in China" to solve the pain of "chip shortage" - Focusing on the three hot spots of ZTE's "ban on sales"

In response to the U.S. export ban order against ZTE, ZTE issued a statement on the 20th saying that the U.S. Department of Commerce insisted on imposing the most severe sanctions on the company before the relevant investigation was completed, which was extremely unfair to ZTE and ZTE could not accept it.

Is the US "sales ban" only aimed at the "non-compliant" operation of one company? How big is the development gap of China's chip industry? How to solve the pain of "chip shortage" in the future? The reporter conducted multiple interviews for this purpose.

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Q1: Does the "sale ban" only target companies that operate "non-compliantly"?

On April 16, the Bureau of Industry and Security of the U.S. Department of Commerce decided to activate the denial order against ZTE Corporation and ZTE Kangxun Corporation on the grounds that ZTE Corporation failed to promptly deduct bonuses and issue disciplinary letters to certain employees involved in historical export control violations.

ZTE Chairman Yin Yimin made his first statement on the 20th: "The US has magnified a minor issue, which has had a huge impact on the company. We will use all legal means to resolve the issue."

"This 'sales ban' is part of the long business dispute between ZTE and the United States. Companies should learn lessons and abide by laws and regulations when operating overseas. But we should also see that the ZTE incident is essentially a war of technology, and we should be wary of the United States politicizing economic conflicts," said economist Zhang Lianqi.

"This action by the U.S. is ostensibly aimed at China, but it will ultimately hurt the United States itself. It will not only cause it to lose tens of thousands of jobs, but will also affect hundreds of American companies that have extensive cooperation with ZTE, and shake the international community's confidence in the U.S. trade and investment environment," said Gao Feng, spokesperson for the Ministry of Commerce.

"We hope that the US side will handle this properly in accordance with laws and regulations. The Ministry of Commerce will closely monitor developments and is ready to take necessary measures at any time to safeguard the legitimate rights and interests of Chinese companies." Gao Feng said that if the US side insists on adopting unilateral protectionist policies and harms the interests of companies in both China and the United States in an attempt to curb China's development and force China to make concessions, it would be a wrong calculation.

Question 2: Is the gap in the development of China's chip industry really that big?

Industry insiders pointed out that the ZTE "sales ban" on the one hand reveals the United States' anxiety about China's move toward high-end manufacturing, and on the other hand it also warns us to face up to our own shortcomings and gaps in the high-tech field.

Chips are known as the "engine" of the information age and are a comprehensive reflection of a country's high-end manufacturing capabilities.

"The ZTE incident is neither equivalent to the development level of China's entire manufacturing industry, nor is it an isolated case in China's manufacturing." Zhang Lianqi said that China's "chip shortage" dilemma to a certain extent represents the current situation of China's manufacturing: big enough but not strong enough.

From big to strong, the key lies in whether import substitution has occurred in technology-intensive industries and the high value-added stage of the industrial chain, whether it has moved towards the middle and high end of the industrial chain, and whether it has mastered key technologies and can innovate iteratively.

Ye Tianchun, director of the Institute of Microelectronics of the Chinese Academy of Sciences, admitted: "We do have shortcomings in chip design and manufacturing, especially the manufacturing link is relatively weak, and some core technologies and key equipment are not fully mastered, but we have laid out these technologies, and the gap with foreign countries is constantly narrowing."

In recent years, a number of key integrated circuit manufacturing equipment in my country have achieved breakthroughs from scratch, and the technical level has been comprehensively improved. Take ZTE as an example. Its international patent applications have ranked among the top three among global companies for eight consecutive years, and the company's major products use a large number of self-developed special chips.

"Only when you become strong will the other side regard you as an opponent. The 'sale ban' to a certain extent reflects the US's vigilance and concern about the development of China's high-end manufacturing industry," said Zhang Ping, a professor at Beijing University of Posts and Telecommunications.

Question 3: How will China solve the pain of "chip shortage" in the future?

Will China be able to solve the problem of "chip shortage" in the future? Experts pointed out that we should neither underestimate ourselves nor be arrogant or take it lightly. We should strengthen our determination to develop independently, maintain strategic focus, increase openness and cooperation while continuously innovating, and realize the high-end development of multiple fields such as chips.

In Ye Tianchun's view, the ZTE incident has sounded a wake-up call for China. Now we must unify our thinking, abandon the practice of "it is better to buy than to make, and it is better to rent than to buy", and make up our minds and persevere in mastering key technologies and equipment in our own hands, otherwise we will continue to be controlled by others.

"China has its own significant advantages, such as the vigorous implementation of 'Made in China 2025' and a huge market. China is developing very rapidly in areas such as semiconductors. In the next 10 to 20 years, it will be expected to make up for its shortcomings and enter the first echelon." Zhang Ping is full of confidence in this.

Thanks to China's institutional advantages, financial advantages and market advantages of concentrating resources to accomplish major tasks, some chip manufacturing and design companies are gradually turning to China, and high-end talents in the semiconductor industry are also constantly gathering in China.

"These have undoubtedly become accelerators of industry development." A senior semiconductor industry figure said with emotion that display screens, which used to be "short of chips and screens", have gone from being completely dependent on imports to being the world's largest and leading the global technological evolution after more than a decade of development. The chip problem will definitely be solved.

High-tech development requires more patience and confidence. Against the backdrop of rising global trade protectionism, the road to leapfrogging is bound to be bumpy.

Zhao Changwen, director of the Industrial Economics Research Department of the Development Research Center of the State Council, said: "No matter what interference we encounter, we must maintain strategic focus and accelerate the implementation of 'Made in China 2025' according to the pre-set goals and pace. As a strategic plan that adheres to market dominance, openness and inclusiveness, we also welcome foreign companies to participate in it to achieve win-win cooperation."