Amid the recent semiconductor war of nerves between China and the United States, US Treasury Secretary Janet Yellen is set to visit China next month, as reported by Politico on the 24th (local time). Yellen, who had previously sent a conciliatory message in a speech last December, stating that she would manage relations with China without rupture, so she expects that her visit will ease tensions between the two countries.
Citing two US government officials, Politico reported that Yellen is scheduled to meet with several high-ranking officials in China next month. This would mark Yellen’s second visit to China in nine months since last July. Yellen is expected to meet again with He Lifeng, vice premier of the State Council of China, with whom she met last year in a working group to resolve financial issues.
The media suggested that the agenda for Yellen’s visit to China could be inferred from her recent speeches. In a December speech, Yellen emphasized that high-level face-to-face meetings between the US and China are crucial for “responsibly managing” bilateral relations. At the time, CNN quoted Yellen as saying, “It is very important for an economic policymaker who deals with financial crises to know well counterparts on the other side of the table and to be able to communicate quickly with them.”
Yellen also mentioned cooperation in the economic field between the two countries, such as transparency in foreign exchange transactions with China and joint response to the global financial crisis, as priorities for this year’s China-related agenda. From China’s perspective, it could be an opportunity to stave off concerns about the economic downturn and ease the extent of the US’s continuous containment of China.
In particular, Yellen’s upcoming visit to China is garnering attention on whether it could alleviate the recent semiconductor war of nerves. According to the Financial Times (FT), China’s Ministry of Industry and Information Technology (MIIT) published guidelines last December prohibiting government agencies in the country from using personal computers (PCs) and servers equipped with Intel and AMD microprocessors. This guideline has been implemented this year and will reportedly require government agencies of the village level and above to purchase Chinese-made processors and operating systems (OS).
The implementation of these guidelines is expected to significantly reduce Intel and AMD’s influence in China. According to the FT, China was Intel’s largest market last year, accounting for 27% of its total sales of $54 billion. China accounted for about 15% of AMD’s $23 billion sales during the same period. Market research firm Bernstein Research predicts that about 23% of server processors in China will be replaced with Chinese-made ones.
Meanwhile, AMD, which is in a hurry, has also been reported to have entered behind-the-scenes negotiations with China. According to the Chinese Ministry of Commerce, on the 24th, AMD CEO Lisa Su met with Commerce Minister Wang Wentao to discuss US-China economic and trade relations and the development of relations between China and AMD. Lisa Su said that China is one of the key focuses of AMD’s global strategy. AMD will continue to invest in the country and work with local partners to deliver better products and services to the Chinese market.
Most Commented