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Export Controls, Innovation, and The Development of The Semiconductor Industry

In: Proceedings of the 9th International Conference on Financial Innovation and Economic Development (ICFIED 2024)

Author

Listed:
  • Wei Chen

    (Wuhan University of Technology, Graduate student of the School of Economics)

  • Yanlin Sun

    (Wuhan University of Technology, Associate Professor of the School of Economics)

Abstract

The development of China’s semiconductor industry has become an essential aspect of high-quality growth in the new stage. The vulnerability of the semiconductor supply chain has emerged as a crucial indicator of the industry’s progress. This piece of writing presents an evaluation of the effectiveness of U.S. export restrictions on China’s technology. To this end, it examines updates to the entity list, and analyzes monthly trade data for semiconductor manufacturing products from 2018 to 2021 to assess the impact of these controls on China’s semiconductor supply chain vulnerability. The article also delves into the role of innovation in this mechanism. The study shows that US export control measures unexpectedly reduced China’s semiconductor supply chain vulnerability. External supply and import demand of China’s semiconductor manufacturing products subject to control were significantly reduced, with limited impact on the industry’s development. US investment in the Asia-Pacific ICT industry contributed to this outcome, and export controls stimulated China’s independent innovation.

Suggested Citation

  • Wei Chen & Yanlin Sun, 2024. "Export Controls, Innovation, and The Development of The Semiconductor Industry," Advances in Economics, Business and Management Research, in: Khaled Elbagory & Zefu Wu & Hamdan Amer Ali Al-Jaifi & Shafie Mohamed Zabri (ed.), Proceedings of the 9th International Conference on Financial Innovation and Economic Development (ICFIED 2024), pages 164-170, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-408-2_19
    DOI: 10.2991/978-94-6463-408-2_19
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