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U.S. laws self-defeating: export laws hinder Chinese business opportunities - News

The ailing U.S. semiconductor industry may be salivating over the prospect of huge Chinese markets, but the biggest impediment to accessing those markets may be the U.S. government.And while the industry worries about China creating a capacity bubble, China still has a long road to travel to become a technological superpower and is more worried about reducing its foreign trade deficit than dominating the world. The ailing U.S. semiconductor industry may be salivating over the prospect of huge Chinese markets, but the biggest impediment to accessing those markets may be the U.S. government.And while the industry worries about China creating a capacity bubble, China still has a long road to travel to become a technological superpower and is more worried about reducing its foreign trade deficit than dominating the world.

The sale of advanced technology to China has been a concern of the U.S. government and was one point of contention to China's accession to the World Trade Organization (WTO). U.S. export laws make it difficult and in some cases outright prohibit export of advanced technology to China. This is obviously an impediment to the semiconductor industry, in particular the purveyors of equipment and process technology, to doing business in China, noted George Koo, director of the Chinese services group at Deloitte & Touche.Koo was one of three speakers discussing business in China at a forum hosted by Semiconductor Equipment and Materials International (SEMI) last week in San Jose.In spite of the United States' reluctance to export advanced technology to China, Europe and Japan have no such qualms. Even as the market for used, older-generation equipment and technology blossoms in Japan, advanced technology is making its way there via these channels, albeit not as fast as it is being adopted elsewhere in the world.....You can read more.



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