German media: In the competition for the semiconductor industry, China is not as powerless as the United States thinks

On April 2, Germany's Handelsblatt reported that China is the world's largest chip market, but because it does not have first-tier chip manufacturers, China is still heavily dependent on foreign supply. Because of this, the United States hopes to slow down the development of China's technology by cutting off semiconductor supply.

The report pointed out that taking Huawei as an example, if the company could get the chips it wanted, it would have a better market performance this year. This shows that the US suppression of China has produced some effects, but the cost is very high.

The report said that in the semiconductor competition, China is by no means as powerless as some American strategists imagine. This was proven by the fact that Applied Materials' acquisition of International Electric Corporation was not approved by China a few days ago. Although both the buyer and the seller are not Chinese companies, completely ignoring China is not an option, because the Chinese market is very important to these companies. After nearly two years of waiting, they would rather give up the acquisition.

Germany's Handelsblatt reported that China may continue to block acquisitions by US semiconductor companies, especially Nvidia's plan to acquire British ARM for US$40 billion, which is likely to be affected.

Finally, the report also pointed out that the US strategy is "encouraging" China to build a domestic semiconductor supply chain every day, although this will take some time. Therefore, the United States should start negotiations with China as soon as possible. It is not unrealistic to reach an agreement, and in the end, both China and the United States, and even Europe, will benefit from it.