JW Insights and U.S. law firm Katten Muchin warned of a potential double-tracked global semiconductor supply chain

JW Insights and U.S. law firm Katten Muchin Rosenman China office published on March 5 "The 2021 Global Semiconductor Compliance Report" in Chinese warned of a potential double-tracked global semiconductor supply chain.

JW Insights is China's top online media and consulting service for semiconductor and ICT industries. Its legal consulting department, headed by Chen Baoliang, offers growing businesses on global compliance amid on-going U.S.-China trade conflict.

"2021 Global Semiconductor Trade Compliance Report" pointed in the Preface," In the wake of the start of Biden administration, it is likely that the United States would introduce more precise export control measures, replacing Trump's mass-killing approach. While it does its best to maintain U.S. export to China, it will contain China's semiconductor industry development through cutthroat export control items. The U.S. strategy rationale is to allow China to continue dependence on U.S. semiconductor products and technologies while permitting most  U.S. semiconductor companies to sell to China and limiting only those top-notch ones in small numbers. Thus, U.S. semiconductor companies will maintain revenue and profits, providing funds for continued R&D and U.S. leading edge in the semiconductor industry."

"Semiconductor export control is the main U.S. weapon in China-U.S. trade war and the U.S. will not give up this sharp one. Though China endeavors to produce more domestic substitutes, U.S. also pushes for semiconductor revival with more stimulating policies and funds. Therefore, in a couple of years, the global semiconductor industry needs to face the reality of China-and-U.S.-doubled tracks." said the report. 

“The 2021 Global Semiconductor Compliance Report” in Chinese consists of six parts: Retrospect of the export control events, Explanation of U.S. entity lists, Various black-list systems, Global security review, China's legal system of export control, and 2021 compliance risks. (For the full Chinese report, visit “JW Insights APP” through http://ijiwei.com/). 

The March 5 seminar by JW Insights attracted attendants from close to 100 Chinese semiconductor companies. Han Lijie and Xue Feng, senior lawyers from Katten Muchin Rosenman LLP, presented and led a discussion on the global compliance topics. The U.S. export control that started in 2020 is getting tighter and more complicated into 2021. Chinese companies are particularly interested in how to continue business without creating trouble.