Export Controls, Other Factors Slow Chip Exports to China, Report Says
U.S. exports of semiconductors to China fell by about $2.9 billion in 2022, “wiping out” growth the industry saw the year before, the U.S.-China Business Council said in a report this week. The decline was partly due to the Biden administration’s sweeping chip controls released in October (see 2210070049), the report said, adding that the “more frequent use of export controls over the last few years has led Chinese customers to deprioritize American products when there are viable domestic and third-country suppliers.”
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The council also said China’s “weak economy” in 2022 stemming from COVID-19-related lockdowns as well as a reduced demand for chips led to the drop in exports, which represented a “double-digit” contraction compared with 2021. But despite the export restrictions, semiconductors “remain the second-largest goods export to China,” USCBC said.
Overall, U.S. goods exports to China reached a record high in 2022 but grew at a “significantly slower rate” compared with American exports to other markets, partly due to Russia’s war in Ukraine and geopolitical tensions, the report said. Exports rose by about 1.2% last year -- an increase mainly led by oilseed and grains -- but oil and gas, along with semiconductors, all saw dips.