US Detains $301M in Goods Over Uyghur Forced Labour as Semiconductor Tensions Rise
In a significant development, US Customs and Border Protection recently detained goods worth over $301 million due to suspected Uyghur forced labour. Electronics topped the list of seized items. Meanwhile, global tensions around semiconductor supply chains are escalating, with the US and its allies considering stricter controls on exports to China.
The US move comes amidst China's push to bolster its domestic semiconductor industry. President Xi Jinping is actively promoting local manufacturers as part of China's broader tech and development strategies. However, this has raised concerns among US allies, leading to discussions on potential chip restrictions. The Netherlands and Japan have already implemented such controls.
Taiwan, which accounts for nearly 39% of global semiconductor production, worth $138 billion, is at the centre of these discussions. An escalation in Taiwan could exacerbate the ongoing global semiconductor shortage.
The US is taking a multi-pronged approach to address its concerns. It is asking the Dutch government to restrict ASML's services to Chinese customers. It is also pressuring Germany to impose semiconductor export controls against China. Additionally, the US is reaching out to Japan to limit exports of vital chemicals used in semiconductor manufacturing to China. Furthermore, the US is scrutinizing China's maritime logistics industry due to potential security vulnerabilities related to Chinese-made cranes at US ports.
These moves highlight the growing geopolitical tensions surrounding semiconductor supply chains. While China is investing heavily in its local chipmakers, with Beijing raising $27 billion for the third phase of its China Integrated Circuit Industry Investment Fund, the US and its allies are tightening controls to address forced labour concerns and strategic competition. The situation is evolving, with potential implications for global trade and technology development.
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