RISC-V chip tech curb on China ‘to harm US firms’

A chip manufacture machine Photo: VCG

A chip manufacture machine Photo: VCG

The US is reportedly working to review the potential risks of RISC-V chip technology being used by major Chinese technology companies, which is seen as a new front of the expanding technology war initiated by the US that aims to curb China’s development in the sector.

Observers said that the US will find it difficult to restrict China on RISC-V technology and that if it does so, US companies could bear huge losses and the global supply chain could be affected.

The US Department of Commerce is reviewing the national security implications of China’s work in open-source RISC-V chip technology, Reuters reported on Tuesday, citing a letter the department sent to US lawmakers.

Any restrictions could set off a chain reaction and create uncertainty for the initiators themselves, Zhang Xiaorong, director of the Beijing-based Cutting-Edge Technology Research Institute, told the Global Times on Wednesday.

“As an open-source technology, RISC-V is widely used in the design of the Internet of Things. China’s contribution to the technology is strong,” said Zhang.

According to Reuters, the US Commerce Department letter said that it is “working to review potential risks and assess whether there are appropriate actions under Commerce authorities that could effectively address any potential concerns.” 

But the Commerce Department also noted that it would need to tread carefully to avoid harming US companies that are part of international groups working on RISC-V technology. Previous controls on transferring 5G technology to China created roadblocks for US firms working in international standards bodies where China was also a participant, risking US leadership in the field, according to Reuters.

Analysts said that the letter shows that the US action is about technology dominance, not open-source development.

RISC-V, pronounced as “risk five,” is a set of basic instructions that tell a chip how to perform a computing task. It provides a common language for designing processors used in devices such as smartphones, disk drives, Wi-Fi routers and tablets, according to RISC-V International, a non-profit managing RISC-V technology.

Since RISC-V is an open-source technology, if the US imposes restrictions, it will slow down the global development of the technology, Ma Jihua, a veteran telecom industry observer, told the Global Times on Wednesday. 

If the US imposes restrictions, it may only restrict American companies that do RISC-V research and development and production from cooperating with Chinese companies, Ma said.

“It’s similar to … when the US sanctioned Huawei [and] American companies weren’t allowed to participate in international conferences or organizations where Huawei was present. However, the ban was eventually revised because Huawei was seen as more important to many international organizations than some American companies,” said Ma, and it will be the same with RISC-V technology.

Controlling China’s access to RISC-V technology, however, is easier said than done, said an analysis published by the Center for Security and Emerging Technology (CSET), a policy research organization within Georgetown University, in January.

RISC-V International moved its headquarters from the US to Switzerland in March 2020 in part to insulate itself from the creeping influence of geopolitics on the chip industry. This move severely limits the US government’s regulatory options, according to CSET.

German firms grow with China

As China’s economy continues to develop and more favorable policies are introduced, many German enterprises are keenly interested in its market advantages and improving business environment. They vow to invest more in China and grow together with the country.

According to the business confidence survey for 2023 and 2024 by the German Chamber of Commerce in China, about 78 percent of German companies expect growth to be consistent in China in the next five years, while 54 percent plan to increase investments in the country.

The Beijing China-Germany Industrial Park, the first national-level park that focuses on Sino-German economic and technological cooperation, has more than 100 German companies, including Fortune 500 firms as well as hidden champion companies.

Join us together with our British host Alexander Long as we explore the industrial park.

‘Choosing China means choosing opportunities, and investing in China means investing in the future’: MOFCOM

Tim Cook, chief executive officer of Apple Inc, exchanges business cards with participants at the China Development Forum 2024 in Beijing, on March 24, 2024. About 400 people, including experts, entrepreneurs, government officials and representatives of international organizations, attended the opening ceremony of the forum. Photo: VCG

Tim Cook, chief executive officer of Apple Inc, exchanges business cards with participants at the China Development Forum 2024 in Beijing, on March 24, 2024. About 400 people, including experts, entrepreneurs, government officials and representatives of international organizations, attended the opening ceremony of the forum. Photo: VCG

 

“Choosing China means choosing opportunities,” He Yadong, spokesperson of Ministry of Commerce (MOFOCM) said on Thursday, when asked about the recent surge of visits by global CEOs to the country.

The spokesperson said China welcomes multinational companies to actively participate in Chinese market for further development.

The remarks came amid the background as China hosts a series of high-level events this week, attracting a good number of global CEOs. Senior officials of MOFOM also met with top executives from over 20 multinational companies such as Apple, Qualcomm and Mercedes-Benz. These multinational companies are of medicine, automobiles, food, finance, cosmetics, electronic information, chemical industry and energy. 

Multinationals from all walks of life visit China intensively to feel the “spring vigor” of China’s economic recovery, which demonstrates the “strong magnetic attraction” of the Chinese market, the spokesperson said. 

China welcomes multinational companies to actively participate in the construction of a modern industrial system in China for greater inclusive development, He said. 

Executives of multinational companies have expressed their optimism of the Chinese market and vowed to continue to invest in China, He said, citing the example of Apple which will continue to increase its investment in R&D and augment its supply chain in China, and the German chemical company Wacker will continue to invest in China and support the green and low-carbon transformation of traditional industries.

Jean-Pascal Tricoire, the Chairman of Schneider Electric, said in a forum held on Monday that the company will fully leverage their digital advantages and sustainable experience and deepen the integration of digital and real industries, accelerate the dual transformation of digitalization and decarbonization, and work with Chinese partners to foster new quality productive forces.

The company said the supply chain in China has increased its overall efficiency by 8-10 percent year by year, and its overall energy consumption decreased by 13 percent compared to 2019 with the deployment of advanced digital systems and artificial intelligence technology.

Data from MOFCOM showed that in the first two months of 2024, the number of newly established foreign-invested enterprises increased by 34.9 percent to 7,160 in China.

China continues to connect the world with a higher level of opening-up. “Choosing China means choosing opportunities, and investing in China means investing in the future,” He noted.

Global Times