... domestic market, allowing it to maintain stability in the economy and industrial production in the face of external shocks, such as sanctions. This factor is crucial, since blacklisted Chinese companies can temporarily switch to the domestic market, as Huawei did recently.
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Challenges
Despite breakthroughs in advanced technology, China is exposed to serious vulnerabilities. According to experts from Mises University, most of China’s success primarily reflects ...
...
The new Executive Order introduces a National Emergency due to the fact that individual countries use access to US civilian technology to develop their military-industrial complex. In the annex to the Order, China is named as such a country, as well as the special administrative regions of Hong Kong and Macau. The very concept of the ... ... International Emergency Economic Powers Act of 1977 (IEEPA), which gives the US Commander-in-Chief the ability to use economic sanctions to counter existing threats. That is, a state of emergency is introduced on a selective issue, and serves as the basis ...
... It is also now prohibited to introduce new product lines or expand existing production with mature technologies by more than 10%. Companies that fail to meet these terms will have to repay the subsidies provided to them within 10 years.
Living under sanctions
U.S. technology restrictions would have had a very limited impact upon China unless key semiconductor technology suppliers from other countries had joined them. Therefore, considerable efforts of U.S. diplomacy were aimed at convincing its partners, mainly the Netherlands, South Korea and Japan, to join the technology restrictions....
