EU’s new protectionist move set to ‘impede its green development’

The EU continues to take protectionist actions against Chinese products, with biodiesel becoming the latest Chinese product targeted by the bloc in a move that will further escalate tension between China and the EU amid the dispute over the EU's additional tariffs against Chinese electric vehicles (EVs).

The EU's protectionist actions will not protect the bloc's businesses from normal market competition, but instead will undermine the competitiveness of EU industries and slow the bloc's transition toward green development, the experts noted.  

In the latest example of the EU's growing protectionism against China, the bloc imposed provisional anti-dumping tariffs of between 12.8 percent and 36.4 percent on Chinese biodiesel starting on Friday, according to media reports. 

China's exports of biodiesel to the EU have dropped sharply since mid-2023, with the volume in the first half of 2024 plunging 51 percent amid the EU's protectionist actions. The EU is one of the largest destinations for Chinese biodiesel exports, accounting for 90 percent of the total export volume in 2023, Reuters reported. 

This is just the latest example of the EU's growing protectionism against Chinese products and companies. The EU has announced so-called anti-subsidy tariffs of up to 37.6 percent against Chinese EVs after what Chinese officials and experts said was a discriminatory investigation into Chinese EVs. The EU has also targeted Chinese companies' involvement in some projects in EU member countries. 

Chinese officials have repeatedly criticized the EU's actions and Chinese industry groups have warned of grave consequences for bilateral economic and trade cooperation as well as the EU's plan to transition toward green development. 

Zhao Junjie, a research fellow at the Chinese Academy of Social Sciences' Institute of European Studies, said that the EU's latest actions against Chinese biodiesel is just another example of the bloc's growing protectionism. "The best way forward is cooperation," Zhao told the Global Times on Sunday, "however, the current political environment in the EU has become inward. The EU's protectionist actions, including the so-called anti-dumping investigations, are very unwise." 

Chinese officials have vowed to take all necessary measures to safeguard the legitimate rights and interests of Chinese companies. 

As part of China's efforts to protect its rights and interests, the Ministry of Commerce earlier this month announced that it has initiated dispute settlement proceedings against the EU's provisional anti-subsidy measures against Chinese EVs at the WTO.

The EU's protectionist moves against Chinese products and companies have already caused damage to trade in relevant industries. 

In the first half of 2024, Chinese EV exports to the EU plunged by 15 percent year-on-year to 221,000 units, according to Chinese official data. In June alone, EV exports fell below the level of 30,000 units, a decline of 31 percent year-on-year and the lowest in the year, the data showed.

Negative impact

Meanwhile, the EU's additional tariffs have caused significant uncertainty within the bloc. According to the latest data, the share of Chinese EVs among newly registered EVs in the EU reached 12.4 percent in June, compared with 10.4 percent a year earlier. 

Commenting on the data, the China Chamber of Commerce to the EU (CCCEU) said that the change most likely reflects fluctuations created by the EU's plan to impose additional tariffs on Chinese EVs. "The data highlights the nervousness and uncertainty in European markets caused by the EU's protectionist measures," the CCCEU said in a statement shared with the Global Times.

The EU's protectionist actions against Chinese EV and biodiesel may led to declining exports to the EU in the short term, however, the moves will also have negative impacts on the EU's development, particularly its transition toward green development, experts said.

"The EU's protectionist actions may be only targeted at certain Chinese products, but it will hurt more industries," Zhang Jian, a vice president at the China Institutes of Contemporary International Relations, told the Global Times. "Chinese exports of biodiesel are in line with the EU's energy policies because the EU plans for its green transition are about cutting the consumption of fossil fuel. Biodiesel is conducive to the EU's green transition and its goals of cutting carbon emissions." 

In addition to the additional tariffs against Chinese products, the EU has become increasingly hostile toward Chinese investments. Under its so-called Foreign Subsidies Regulation (FSR), Brussels has launched so-called investigations and even raids against Chinese companies, some of which led to Chinese companies to withdraw from projects in EU member countries. 

Since the beginning of this year, the EU has launched five investigations under the FSR into Chinese companies. In one of the striking examples, in March, Chinese train maker CRRC withdrew from a 610 million euro ($660 million) public tender for a Bulgarian railway project, after the EU launched an investigation into the bid under the FSR framework.

The EU's moves have created great uncertainty for Chinese businesses operating in the EU and it will lead to a decline in Chinese investments, even as some EU member countries are seeking to attract Chinese investments, Chinese industry groups and experts have warned. 

On Friday, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products warned that EU members' backing of anti-subsidy measures targeting Chinese EV manufacturers will inevitably lead to a loss of investment in Europe.

China’s MSS unveils overseas spy gadgets disguised as USB flash drives, pens

China's Ministry of State Security (MSS) on Thursday disclosed a case in which a device resembling a USB flash drive turned out to be a covert eavesdropping device, reminding the public to be cautious of seemingly inconspicuous devices. Once they are used for espionage activities, they become specialized espionage equipment, posing a threat to the national security.

For example, a pen with a hidden camera could be used by spies to secretly photograph sensitive documents. Miniature drones that resemble insects can be used for information gathering with their tiny capture devices. These covert tools highlight the potential dangers of seemingly harmless objects in our surroundings, according to the ministry.

A Chinese business delegation participating in a development project bid overseas discovered a listening device disguised as a USB flash drive in a box of napkins delivered to their private dining room. They immediately reported it to the Chinese Embassy in the country. 

The device was brought back to China, and after identification by national security authorities, it was confirmed that the device had two miniature microphones, a lithium battery, a hidden micro button for operation control and digital encryption recording capabilities, said the ministry.

Detailed rules for the implementation of the Counter-Espionage Law stipulate that "specialized espionage equipment" refers to equipment such as covert eavesdropping and surveillance equipment, and electronic monitoring and interception equipment used to obtain intelligence. National security authorities are responsible for the confirmation of specialized espionage equipment.

According to China's Counter-Espionage Law, no individual or organization shall illegally produce, sell, possess, or use specialized spy equipment for espionage activities. Specialized espionage equipment shall be confirmed by the national security authorities in accordance with regulations.

Domestic BCI technology proves effective, eyeing market launch: researcher

Clinical trials have showed effectiveness of China's domestic brain-computer interface (BCI) system and Chinese scientists are trying to accelerate pace to launch the products in market as early as possible. 

 A recipient of a BCI system developed by a team from Tsinghua University can now control a computer with his own thoughts and brain signals. He is also able to control a wheelchair with his mind. These prove that signal control of BCIs has been successful, Hong Bo from the School of Medicine with Tsinghua University who leads the research, told the Global Times.

According to Hong, a wireless minimally invasive BCI system developed by the Tsinghua team was implanted in December 2023 into the brain of the recipient, surnamed Bai, 35, who have been paralyzed for years following a car accident.

And another patient, surnamed Yang, 54, who has been paralyzed for 14 years, also received the implantation surgery of the Tsinghua team's BCI system in 2023. He is now able to proficiently use his minds to control exoskeleton glove. His hands have also regained some of its grabbing function, Hong said.

These all prove the effectiveness of our BCI system. Looking ahead, the team will, subject to regulatory approval, further expand the scale of medical clinical trials on the path to providing a commercially viable service to benefit the greatest number of patients, he noted. 

BCI refers to the technology that establishes a direct connection pathway between the human brain's nerves and electronic or mechanical devices, to achieve information interaction and functional integration between the nervous system and external devices. 

Chinese scientists have achieved breakthroughs in domestic research and development in BCI technology in recent years and actively applying the technology in rehabilitation, epilepsy and depression treatment. Research in technology in China has now reached a crucial stage, transitioning from the laboratory to the market. Industry observers noted that this shift is expected to play a significant role in driving economic development and creating new competitive advantages in the future, experts said.

Many view the BCI technology as holding the key to an "era of neuroscience," but the technology has also encountered controversies in safety and ethics after Elon Musk said in January 2024 that his BCI company, Neuralink, had successfully completed the first human brain implantation surgery of its BCI device.  

In previous interviews, Hong told the Global Times that compared with Neuralink's invasive technology, his team's wireless semi-invasive BCI technology offers higher level of safety and a longer product lifespan. 

Exclusive: Possibility of new pandas breeding babies in HK promising: official

The possibility of the new pair of pandas breeding baby pandas in Hong Kong is promising thanks to advancements in technology and a better understanding of the endangered animal, an official from the China Conservation and Research Center for the Giant Panda, told the Global Times, saying that preparation work for sending pandas to Hong Kong is still underway.

John Lee, Chief Executive of Hong Kong Special Administrative Region (HKSAR), revealed on July 1 that the central government would be sending a new pair of giant pandas from the China Conservation and Research Center for the Giant Panda to Hong Kong to mark the 27th anniversary of the city's return to the motherland, adding that the two pandas would arrive within months.

Lee said the HKSAR government has told central government that hopefully the new pair of giant pandas gifted to Hong Kong will be young adults, healthy and strong, and can give birth to the next generation in Hong Kong. Previously, the National Forestry and Grassland Administration has agreed to send a pair of giant pandas aged around five to eight years old after considering Hong Kong's request.

Li Desheng, deputy director of the China Conservation and Research Center for Giant Panda believed that it is highly possible that the pair of giant pandas being sent as a gift to Hong Kong will be able to breed.

Li said in an interview with the Global Times that his team has carefully considered various factors such as the pandas' physical health, genetic background, and temperament when selecting the giant pandas. He noted that selected pandas, aged between five and eight, have reached sexual maturity, and as long as they can adapt to their new environment, they can successfully breed.

Moreover, Li said the advance of technology and deeper understanding of the endangered animal will also help.

The first pair, male An An and female Jia Jia, arrived in the city in 1999 to celebrate the smooth establishment of the One Country, Two Systems. Ying Ying and Le Le were the second pair that the Chinese mainland gifted to Hong Kong in April 2007, sparking a "panda fever," drawing a crowd of 35,000 visitors when they made their official debut to the public at Ocean Park.

According to Li, his center has conducted fruitful cooperation with Hong Kong in taking good care of the giant pandas in the city, but it is still a pity that the previous two pairs failed to breed baby pandas.

The panda expert in Sichuan said that the preparation work for sending pandas to Hong Kong remains underway, with an arrival date yet to be set.

Hong Kong's Ocean Park, new home of the pandas, will dispatch caretakers to Sichuan to receive training in feeding management, disease prevention and control, and artificial breeding, said Li, adding that the Sichuan center will pass on their years of experience in breeding giant pandas to the experts in Hong Kong.

The Global Times learned at a forum in Hong Kong held this month that the Ocean Park is making final preparations for the new pair, including enhancing their living space and providing innovative digital and immersive experiences for visitors.

Paulo Pong, chairman of Ocean Park, said he is optimistic about the significant economic impact, citing the success of the first pair of pandas in attracting visitors.

From wealth fund manager to kindergarten accountant, a job-seeker’s career path causes debate on social media

A former employee of a wealth fund management company in Beijing has secured a new job at a kindergarten operated by the Ministry of Commerce (MOFCOM), with the unusual career path arousing both interest and debate on social media, Chinese domestic news portal thepaper.cn reported.

Curious netizens pored over government announcements to unveil a former employee with a postgraduate degree working with a wealth fund management company, was now listed as a top out of a total of five job applicants at a kindergarten associated with MOFCOM.

The new position is an accountant at the kindergarten. Chinese government departments and its affiliated entities are required to publish their annual employment history and the details of all job applicants to the public for transparency purposes.

Some netizens were appalled by the switch of this person from a highly sought-after financial position to a new job at a kindergarten associated with a government department.

But there are also netizens who believe the job at a government affiliated institution offers stability and the job could be less stressful.

The news came against the backdrop of reported industry-wide salary reductions across the asset management industry, which is undergoing a correction following a massive boom in the past several years.

"Some may see it as a downgrade, but I believe this could be an upgrade [in job]," one netizen commented.

Experts pointed out while the new job at the kindergarten may sound like a "step backward", it reflected the unique career path chosen by each individual based on his or her career planning, area of interest and the reassessment of situation of the line of trade the person engages in. So, the job change was quite "normal," they noted.

China's central government aims to create more than 12 million urban jobs in 2024, with a surveyed urban unemployment rate kept within 5.5 percent in 2024, as it implements an employment-first policy.

Chinese cities open marriage registration on weekend to accommodate Qixi Festival

Multiple Chinese cities have announced that they will work overtime on Qixi Festival, or the Chinese Valentine's Day, falling on Saturday this year, to accommodate more couples seeking to register their marriages on the auspicious day, with some initiatives introduced, such as offering special gift packages and organizing group wedding ceremonies.

Some of the marriage registration offices, including those in Suzhou, East China's Jiangsu Province, and Shanghai, have already filled up their online reservation slots. Civil affairs authorities in Suzhou announced that couples can also wait in line onsite to conduct relevant procedures.

Local civil affairs authorities encourage marriage registration offices to meet the needs of the public and carry out related services, but there are no specific mandatory regulations, China's Ministry of Civil Affairs said on Monday, in response to a netizen's question about whether marriage registration can be conducted on this year's Qixi Festival, which falls on a Saturday.

Local civil affairs authorities' move to work on Saturday reflects a responsive attitude, demonstrating the "continuous improvement" of grass-roots governance in meeting the requirements of modern society, Song Jian, a demographer from the Center for Population and Development Studies of the Renmin University of China, told the Global Times on Thursday.

The move also promotes traditional culture and adds a sense of ceremony to marriages, fostering marital stability and family harmony, Jiang Quanbao, a professor from the Institute for Population and Development Studies at Xi'an Jiaotong University, told the Global Times on Thursday.

Meanwhile, cultural activities themed around Qixi are being launched in many places across the country, driving the continuous improvement of the consumption market. In Xiaogan, Central China's Hubei Province, themed activities will include Hanfu shows, light shows, and collective weddings. 

The Qixi Festival flower pre-ordering has started. "Our orders have doubled compared to normal days," a Shanghai-based flower shop owner surnamed Yao told the Global Times on Thursday. "We will be operating 24 hours on Qixi, ensuring that the flowers are delivered on time," Yao said.

China witnessed 3.43 million couples registering for marriage in the first half of this year, down by 498,000 couples during the same period from last year, according to the Ministry of Civil Affairs. 

The government has implemented policies to boost fertility, such as universal childcare. These measures aim to create a positive atmosphere for marriage, encourage young people to marry at the right time, and promote correct views on marriage and family, to alleviate anxiety, reduce pressure, and create a marriage and fertility friendly society, Jiang said.

China-US AI cooperation in Africa is crucial for continental development

In recent years, artificial intelligence (AI) has been rapidly developed in Africa. A growing number of forums and conferences are discussing the possibility of AI cooperation in fields including agriculture, health care, education and finance. With the development opportunities created by AI, achieving breathrough development has become a focus among African countries.

AI now increasingly creates opportunities for the modernization of the continent. On one hand, African countries are increasing government support and investment in the field of AI. For instance, South Africa in 2022 established the Artificial Intelligence Institute of South Africa (AIISA), aiming at supporting industries such as manufacturing, services, agriculture, and transportation to apply AI solutions. 

In early June, officials and industry experts from various African countries gathered at the Artificial Intelligence Week (SIA) in Lomé, Togo, to discuss various development initiatives and investment schemes.

On the other hand, the younger generation of highly educated Africans in the workforce are directly benefiting from significant changes brought about by AI, particularly in how it can rapidly bring their creative ideas to fruition.

Meanwhile, there remain bottlenecks and challenges for AI development in Africa, with infrastructure and talent being the two major factors restricting the development of new AI solutions. Africa has a huge infrastructure financing gap. In particular, digital infrastructure is still in its early stages and requires a large amount of capital injection.

The US is trying to achieve dominance over AI in Africa. The US also sees Africa's AI field as ocean of opportunity, mainly seeking to dominate the African market through market-driven approaches and the establishment of industry standards.

However, the US is more interested in influencing the technological environment in Africa. As an emerging tech field, there are blank areas in Africa's AI policies, technologies, industries, application standards, and governance models. 

The US has a natural advantage and significant influence in international technical standard-setting organizations. By participating in and leading the development of international standards, it can promote technology standards that align with its own interests. Therefore, the US is actively working with some African countries to establish data privacy and security standards, enhancing America's influence on technology standards. The practice has not been well received by African countries.

China and the US share complementary roles in the AI development of Africa. Unlike the US, which uses multinational companies to establish data centers and seek application standard hegemony, China is more focused on the interconnection and interoperatability of digital infrastructure in Africa and the cultivation of local talent.

In the field of hardware infrastructure, in view of Africa's goal of building better telecommunications and data centers, China has decided to mainly invest in large-scale infrastructure projects rather than investing in individual local companies. In the field of software support, China has ramped up efforts to train much-needed digital talent in Africa.

In fact, both China and the US have comparative advantages in the field of AI. Cooperation between the two countries is of positive significance for the development of AI in Africa and global AI governance. China has also expressed willingness to carry out trilateral development cooperation in Africa with international organizations and relevant countries, establish AI governance institutions, and increase the presence of developing countries in the field of technology regulations.

Taking advantage of the opportunities presented by the development of AI is a unqiue possibility for Africa to not be marginalized in the "Fourth Industrial Revolution." However, despite showing strong momentum in the field of AI, the gap is still huge. Cooperation among major powers in the field of AI in Africa, rather than playing zero-sum games, is crucial for the development of the African continent

Bangladesh’s president dissolves parliament after PM leaves nation

Bangladesh's President Mohammed Shahabuddin on Tuesday dissolved the parliament, a key demand of the protestors, following Prime Minister Sheikh Hasina's resignation. 

"China is closely following the developments in Bangladesh. As a friendly neighbor and comprehensive strategic cooperative partner of Bangladesh, China sincerely hopes that social stability will be restored soon in the country," according to remarks by Chinese Foreign Ministry spokesperson on Tuesday.

Global observers are closely monitoring the development of the unrest in the South Asian country with a focus on whether the disturbance can be ended by an interim government and elections, and how the incident will influence regional situation.

The coordinators of Bangladesh's student protest movement were scheduled to meet with the army chief, General Waker-Uz-Zaman on Tuesday after the military announced plans to form an interim government, the Guardian reported.  

Hasina, 76, resigned and left the country on Monday. She landed at a military airfield Hindon near Delhi, Reuters cited two Indian government officials as saying. India's National Security Adviser Ajit Doval met Hasina there. 

Students in Bangladesh started demonstration in early July against a quota system which reserves some government jobs for families of veterans of the country's 1971 war of independence. The Supreme Court rescinded the job quota policy on July 21. But the protests continued as students and other citizens assembled and called for justice for those killed in the protests and demanded Hasina to step down, BBC reported.  

In Dhaka on Monday, police and other government buildings were attacked and set on fire. Protesters attempted to tear down a statue of independence leader Sheikh Mujibur Rahman, Hasina's father, BBC said. 

Last month, at least 150 people were killed and thousands injured in violence during the protest.

The protests began with strong economic reasons rather than solely political motives, Liu Zongyi, director of the Center for South Asia Studies at the Shanghai Institutes for International Studies, told the Global Times on Tuesday. 

Bangladesh is one of the world's most densely populated countries - around 170 million in an area of more than 148,000 square kilometers - and has a significant number of young people in need of employment, Liu said. 

"Inflation and economic problems may have intensified the unrest. But after the job quota policy was rescinded, the situation did not settle down but evolved into a political movement," said Liu. 

Given the US and some Western countries' long-term criticism of Hasina's tough stance toward the US, there are speculations about potential Western involvement in the Bangladesh movement, experts said.  

Qian Feng, director of the research department at the National Strategy Institute at Tsinghua University, said the unrest in Bangladesh also underscored the challenges many developing countries face. 

After Hasina's resignation on Monday, the military chief, Zaman, announced in a televised address to the nation that he was temporarily taking control of the country, with soldiers attempting to stem the growing unrest. Zaman had also held talks with leaders of major political parties, excluding Hasina's long-ruling Awami League, to discuss the way forward, the Guardian reported. 

With Hasina reportedly going to India, it is possible that the opposition Bangladesh Nationalist Party (BNP) may come to power to form a new government. However, the road ahead is challenging, given the domestic issues related to employment and economic development, Lin Minwang, deputy director at the Center for South Asian Studies at Fudan University, told the Global Times on Tuesday. 

President Shahabuddin on Monday ordered the release of Begum Khaleda Zia, BNP's chairperson, who was convicted in a graft case in 2018 but was moved to a hospital a year later as her health deteriorated. Zia has denied the charges against her, according to media reports. 

Analysts said the stability of Bangladesh hinges on upcoming political negotiations. If the military and the opposition reach a consensus, social order may be quickly restored; otherwise, the situation could remain turbulent.

Global reaction

The month-long protests in Bangladesh have caught world attention. On Monday, the White House and the US State Department separately urged parties in Bangladesh to refrain from violence and restore peace at the earliest. The EU also called for an "orderly and peaceful" transition, according to media reports. 

On Tuesday, Indian External Affairs Minister Subrahmanyam Jaishankar told an all-party meeting that India has assured help to Hasina and given her time to decide the future course of action, newswire PTI reported quoting sources. 

Hasina's resignation could affect India's diplomacy with Bangladesh due to New Delhi's close ties with Hasina and her family, experts said. However, some analysts believe India may exercise restraint to avoid escalating anti-India sentiments in Bangladesh and it may not immediately offer asylum to Hasina. 

Indian broadcaster Times Now cited sources as saying that Hasina would leave for London.

No matter how the situation in Bangladesh further develops, the country has the demand to tackle its social and economic problems. Therefore, maintaining good relations with China, a country having the capacity without intention to interfere its internal affairs, is crucial for Bangladesh, Liu said.

The Paris Olympics opening ceremony: A mirror into Western cultural divides

In the eyes of many Chinese, French culture is often regarded as a symbol of romance, elegance and beauty. However, some parts in the opening ceremony of the Paris Olympic Games have been somewhat challenging to understand, sparking controversy. Is the French culture itself going through an unprecedented increase in cultural divisions? 

During the Paris Olympics opening ceremony, a performance featuring drag queens, dancers, and models sparked enormous controversy. Mimicking Leonardo da Vinci's The Last Supper, the act drew severe criticism from Western conservatives and religious groups.

Some hailed the performance as a celebration of France's rich cultural diversity and openness. However, right-wing critics argued that the portrayal of France's multicultural society and the inclusion of avant-garde art forms undermined traditional French and Christian values.

This controversy highlights the deep-seated cultural divisions in France and other Western developed nations in the post-industrial era.

As societies become increasingly diverse and globalized, the notion of a singular, unified cultural identity is being challenged. The tension between preserving traditional values and embracing cultural diversity - often framed as a left-wing versus right-wing conflict - is common in many Western countries.

In France, the concept of "Frenchness" has long been closely tied to the nation's rich cultural heritage, including its art, literature, cuisine and history. However, the growing diversity of France's population, particularly in urban areas, has led to a reevaluation of what it means to be French.

On one side, conservative groups strive to maintain what they consider the quintessential French identity, characterized by the country's history, language and tradition. Conversely, progressives advocate for an evolving identity that embraces diversity and modern influences. This tension extends beyond art and culture, touching on issues pertaining to national identity and social values.

Economic inequality has further exacerbated these cultural tensions. 

In recent years, France has experienced several socio-economic upheavals, most notably the Yellow Vests movement. This grassroots protest stemmed from widespread discontent with economic disparities, government neglect of rural areas and the impacts of neoliberal economic policies. The movement highlighted deep divisions between urban and rural populations, elites and working-class citizens, and those who benefit from globalization and those left behind.

Such cultural divides are not unique to France. In many Western developed countries, the post-industrial era has brought significant cultural shifts. The decline of traditional industries and globalization have increased mobility and diversity, challenging conventional notions of cultural identity. 

For example, in the US, debates over immigration and cultural diversity have been contentious for decades. The rise of nationalist and populist movements in Western developed nations reflects a reaction to perceived threats to traditional and religious values and economic security.

The rise of social media has also played a crucial role in exacerbating these cultural divides. Social media platforms create echo chambers where individuals can connect with those who have the same views and values, reinforcing existing beliefs and biases. This leads to polarization, with individuals becoming increasingly entrenched in their viewpoints.

The post-industrial era has also brought significant economic changes. The decline of traditional industries has led to unemployment and financial insecurity, particularly in rural areas. This has fueled resentment toward globalization and immigration, which are both viewed as threats to the traditional way of life.

If the opening ceremony of the Paris Olympic Games showed us anything, it is that Western culture is experiencing an unprecedented gap. How this will evolve, and whether it will be reconciled, are related to the impact of Western culture on global geopolitics.

US reportedly to escalate AI chip restrictions on China, 'may incur countermeasures'

The Biden administration is reportedly working on a set of unilateral restrictions on China's access to artificial intelligence (AI) memory chips and equipment capable of making those products, in the latest hegemonic move to contain China's AI industry in order to maintain its global monopoly.

Chinese observers said the US cannot impede China's technological progress and will only impel Chinese enterprises to strive for technological self-reliance. They said China may take countermeasures, including lodging complaints with the WTO, when it is necessary to fight back as the US continues to expand its "small yard" policies.

Observers said the US' intensifying crackdown on and "decoupling" from China will lead to further deterioration in China-US bilateral relations, bringing monumental losses to US firms that are betting on Chinese opportunities.

US' stepped-up restrictions

Bloomberg reported on Thursday that the Biden administration is expected to announce a set of new restrictions as soon as late August to curb China's access to AI memory chips and related equipment.

The measure is designed to keep Micron Technology Inc and South Korea's leading memory chipmakers SK Hynix Inc and Samsung Electronics Co from supplying Chinese firms with so-called high-bandwidth memory, or HBM, chips, the report said, citing people familiar with the matter. HBM chips are required to run AI accelerators like those offered by Nvidia Corp, it said.

"By putting patches on its chip export restrictions on China, the US' ultimate purpose is to curb China's technological development so as to maintain its global monopoly in cutting-edge technologies," He Weiwen, a senior fellow at the Center for China and Globalization, told the Global Times on Thursday.

He said the US' political maneuvers are not sustainable, as they go against economic rules and the interests of US enterprises and residents.

"China may take countermeasures when it is necessary," He said, noting that China could also lodge complaints with the WTO if the US' restriction measures against China reach a certain scale.

At a routine press conference on Wednesday, Chinese Foreign Ministry spokesperson Lin Jian blasted the US for continuing to politicize trade and tech issues, tie them to national security and use them as a weapon to tighten control over chip exports to China and coerce other countries to go after China's semiconductor industry, which severely undermines international trade rules, destabilizes global industrial and supply chains, and serves no one's interests.

The Biden administration is taking an increasingly hardline stance on China issues in the election year. In June, the US Treasury Department issued draft rules for banning or requiring notification of certain investments in AI and other technology sectors in China that could "threaten US national security."

Lü Xiang, a research fellow at the Chinese Academy of Social Sciences, warned that the US' intensifying crackdown on China's technological rise may further harm China-US relations and send bilateral relations to a new low.

In addition, the US' attempts to crack down on China will backfire on itself and its allies, Lü told the Global Times on Thursday.

"For example, South Korea and Japan previously exported a large number of semiconductor products to China every year, but the US' export restrictions led to South Korea posting a trade deficit with China. The US' selfish moves will harm its allies' production capacity, and will prompt those countries to resist the US' coercion one day," Lü said.

China market indispensable

"For US, tightening chip export controls on China is a double-edged sword," Fu Liang, a Beijing-based tech analyst, told the Global Times on Thursday.

Faced with external pressure, Chinese chip producers are accelerating research and development to boost domestic replacements, which means medium- and low-performance US chip products will become increasingly insignificant for the China market, Fu said.

Despite the Biden administration's continuous crackdown on China's high-tech field, US firms such as Nvidia are striving to tap the great potential of the huge market of the world's second-largest economy.

Nvidia is reportedly working on a special version of its AI chip for the China market. Nvidia will work with Inspur, one of its major distribution partners in China, on the launch and distribution of the chip, which is tentatively named "B20," and the shipments are planned to start in the second quarter of 2025, Reuters reported in July.