IMF economist says trade restrictions on Chinese microchips could harm global economy
31 Jan 2023 12:08pm
Microchips
"Our analysis suggests that such reshoring... would be something that potentially could be harmful to the global economy," Gourinchas said on Monday night when asked about the impact of Japan and the Netherlands agreeing to adopt certain US export controls on China's chip-making industry.
Gournichas added that the IMF is looking at these developments in the semiconductor sector and trying to understand its implications for the global economy, reported Sputnik.
The IMF official reemphasised that their initial analysis suggests that moves by the US and its allies will not necessarily lead to stronger growth.
The US has reached a deal with Japan and the Netherlands to restrict China's access to their advanced semiconductor chip-making technology, according to media reports. Several key companies in Japan and the Netherlands, as part of the agreement, will implement some US export control measures adopted in October.
The new agreement will restrict China's access to semiconductor technology from Dutch firm ASML and Japanese firms Nikon Corp and Tokyo Electron Ltd, media reported.
Dutch Prime Minister Mark Rutte said that it is unclear if the Netherlands will disclose details about the agreement.
In October, the Biden administration expanded controls on the export of US semiconductor technology going to China to restrict Beijing's ability to make certain high-end microchips used in military applications. Beijing took the matter to the World Trade Organisation (WTO), filing a lawsuit challenging the US export controls. - Bernama
