China imports computer chips worth 300 billion US dollars

2. September 2020

This year China will import computer chips worth at least 300 billion US dollars. According to a spokesman for the Chinese Industry Association, this is the third year in a row and a sign of the country’s dependence on foreign know-how despite efforts to strengthen domestic manufacturing expertise. Wei Shaojun, the vice president of the Chinese Semiconductor Industry Association, said at a conference that China is currently the world’s largest importer of computer chips and other semiconductors. In 2013, the value of chip imports to China was more than 200 billion US dollars, in 2018 and 2019 more than 300 billion US dollars, and a similar amount is expected for the current year 2020.

Wei estimates that about half of all computer chips are processed into products that are then exported. In the past, China has invested enormous sums in research and the development of a domestic semiconductor industry. The recently flared up dispute between the USA and the Chinese technology group Huawei increases the pressure on local companies. The Trump government issued a decree last month that prevents companies from exporting certain computer chips containing proprietary technology from the US. Instead, a separate license is now required for export. Industry insiders suspect that this move is intended to make it more difficult for Huawei to gain access to standard computer chips manufactured in the USA, disrupt the global supply chain and attack Huawei’s leadership in the smartphone market.

China’s efforts to build a local and independent semiconductor industry are led by, among others, the largest domestic chip manufacturer, Semiconductor Manufacturing International Corp. The company plans to increase its equity and spending but is experiencing difficulties with technologies for production due to lack of know-how. Industry President Wei warned that tensions between the US and China could further intensify and warned that the semiconductor industry has a strong global linkage and that in the event of disruptions all parties involved would be negatively affected. Certain product groups, such as machines or electronic devices, must be awarded a CCC certificate in order for products to be exported to China or manufactured locally. The CCC certificate was introduced in 2002 and applies to both imported and Chinese products. The Chinese CCC is similar to other certifications for standardizing product quality, such as the European CE system, but there are important differences. We would be happy to advise you without obligation on the scope and requirements of a China CCC certification.

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