Beijing is increasing its stockpiles of US semiconductors. In October alone, China's total imports of US chips were worth $1.1 billion, a 60% increase compared to the same period last year.
In the first 10 months of the year, China imported $9.61 billion worth of microchips from the United States, a 42.5% increase compared to the same period last year. Since June, China's monthly chip purchases from the world's largest economy have consistently exceeded $1 billion.
China is preparing for the risk of increased US sanctions on its chip industry. (Image: Defense One)
Liang Yan, a professor of economics at Willamette University (USA), commented: "China is increasing imports of chips and chip manufacturing machinery to prepare for a wave of US sanctions targeting the chip industry."
Of the nine types of microchips imported from the US, China primarily focused on CPU-based microprocessors and controllers, as well as chips designed for signal storage and amplification.
China continues to face challenges in developing more advanced chips. According to a Bloomberg report, tech giant Huawei Technologies is still relying on 7-nanometer architecture for its next two Ascend processors, as US technology restrictions prevent the company from accessing more advanced lithography machines.
This year, Chinese President Xi Jinping emphasized the need for China to develop "new productive forces"—calling for technological breakthroughs in strategically important emerging industries such as artificial intelligence (AI), which could boost economic growth, upgrade industrial chains, and protect itself from global economic and geopolitical pressures.
However, Donald Trump's victory in the 2024 US presidential election has heightened concerns for Chinese technology companies. Consequently, many predict that Trump will continue to target and impose strong sanctions on Chinese companies, as he did during his first term.
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