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The battle between the industrial chain and the supply chain has become the main battlefield of the Sino-US game

  Recently, the “Chip and Science Act” (hereinafter referred to as the “Chip Act”), known as the largest industrial policy in the history of the United States, was officially introduced. The bill aims to “compete” competition from China by bolstering U.S. industrial, technological and military advantages by providing massive federal subsidies to the semiconductor industry. Among them, the “China Guardrail” clause is seriously harmful to China and the global semiconductor industry chain, and it also means that the new industrial policy framework vigorously promoted by the United States, “Controlling China with Chains” will become the core of China’s strategy.
  The essence of great power competition lies in the changing international pattern. The United States is increasingly strengthening China’s position as a “systemic competitor”, and “controlling China with chains” is an important means.
  Since the Biden administration came into power, the United States has been vigorously introducing a series of bills including the “2021 American Innovation and Competition Act”, “Chip Act”, and “Inflation Reduction Act” involving the content of curbing China, strengthening the “taking China as the basis”. The Center’s Global Industrial Chain Supply Chain System” was adjusted to “America-centered Global Industrial Chain Supply Chain System”, replacing “Made in China” with “Made in America”.
  On the one hand, the United States has adopted measures such as industrial subsidies, export control lists, physical sanctions, foreign investment security reviews, and “China Guardrail” clauses to restrict not only key technologies and resources, but also key investments. The new model of government→whole society”. For example, the Chip Act not only involves $280 billion in investment, $52 billion in massive subsidies, but also prohibits companies that receive federal funding from significantly increasing production of advanced-process chips in China within a decade. Companies that violate the ban or fail to fix the violations may be required to fully refund federal grants. In addition, the U.S. Congress is also planning to advance legislation to rewrite overseas investment rules. The Investment Restriction Act requires U.S. companies and investors to disclose new foreign investments, and authorizes the executive branch to establish a new cross-agency agency, the National Critical Capabilities Commission, to target U.S. rival countries such as China on so-called “national security” grounds. “investment subject to security review or blocking of investment.
  On the other hand, the United States has actively launched “supply chain diplomacy” at different levels such as the global, regional and bilateral levels, united allies and partners, and built the “Western Front” (U.S.-Europe Trade and Technology Committee, TTC for short) and the “Eastern Front” ( The Indo-Pacific Economic Framework (IPEF for short) is a coordination mechanism, striving to build a “New Friendly Economic Alliance” with the strategic goals of “America First” and “De-Sinicization”.
  The new strategic trend of the United States’ “controlling China with chains” will bring unforeseen impacts on the division of labor in the global industrial chain and supply chain, and it is self-evident that it will have an impact on China’s trade and investment substitution effects and industrial chain transfer effects. In this regard, a rational judgment is required. From the endogenous point of view, since the 1970s and 1980s, the Asian industrial division network and the integrated system of industrial chain and supply chain have long been formed. China has become the connecting hub of the global industrial cycle. One-third to two-thirds of the world’s countries and The region is closely linked with China through trade in final consumer goods and intermediate goods, forming a two-way “nested” global industrial division system. At the same time, the “dual-core role” of “world factory” and “world market” also makes China one of the most important external demand markets in the world. This logic, rooted in the global industrial division of labor, remains unbreakable.
  However, we must be vigilant that the world is currently in the stage of “chain change”, the path of Sino-US cooperation for decades has been broken, the existing space for China to participate in the division of labor in the global industrial chain has been compressed, and related companies or industries have been “encircled and blocked”. It will become the norm, and preparations for a “protracted war” must be made. At present, China’s chips, industrial software, operating systems, engines, precision instruments, major equipment, important materials and key components are still facing the problem of “stuck neck”. In particular, the chip, semiconductor and integrated circuit industries, which are the brains of the industry, have a low self-sufficiency rate, and most of the core technology products rely heavily on imports.
  Faced with this situation, China should maintain its strategic focus, unswervingly promote economic globalization and higher-level opening up, accelerate the integration of high-level international economic and trade rules, and deepen the global industrial chain and supply chain with institutional advantages, market advantages and industrial chain advantages. cooperation:
  The first is to speed up the formulation of a systematic industrial chain and supply chain security strategy, strengthen strategic orientation and goal guidance, especially in key areas such as semiconductors and operating systems, gather elite forces, and reverse the passive “stuck neck” of core technologies as soon as possible The short board of the situation and talent bottleneck. At the same time, through characteristic innovation, establish local advantages, form countermeasures and competitive checks and balances;
  the second is to give full play to the attraction and leverage of China’s super-large market. Deepen economic, trade and investment ties with major trading partners, and create new competitive advantages in the global industrial chain and supply chain collaboration system. Promoting the construction of a new open economic system, creating a more market-oriented, internationalized, and law-based business environment, and promoting the regional value chain with China as the final consumer market through the “dual circulation” strategy, further concentrating on China;
  the third is to adapt to the global The development trend of the industrial chain and supply chain, strengthen the diversification strategy of China’s industrial chain and supply chain, build a trustworthy alliance of the industrial chain and supply chain, and make full use of the existing mechanisms and platforms such as the “Belt and Road” initiative and the Regional Comprehensive Economic Partnership (RCEP). At the same time, accelerate the negotiation process of the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) and the Digital Economy Partnership Agreement (DEPA), and promote the construction of a mutually beneficial and win-win global supply chain cooperation system.