A possible export control and curb on Chinese investment in the US semiconductor sector won't be a disaster for China, instead it will likely boost China's semiconductor industry and hasten the country's ascent up the global value chain in high-end manufacturing and electronics.



Growing scrutiny on Chinese investment in the semiconductor industry from developed economies over the past few years has made China realize that excessive reliance on foreign countries will lead nowhere and that there is no short-cut in the industry. China will have to rely on itself and spend more on research and development to build its semiconductor industry.



According to a recent report by the Wall Street Journal, the Obama administration is finalizing a study that could lead to stricter export control on semiconductors and restrictions on Chinese investment in the industry. Washington's stance will likely only get tougher after President-elect Donald Trump takes office.



The US' move citing national security concerns is not just a trade and investment issue. It is clear that the US wants to repress China's development of strategic industries. In developing semiconductor technology China needs major breakthroughs as it works to upgrade from labor-intensive manufacturing to high-end manufacturing which generates higher added value.



The US wants to remain at the height of the industry and China's ramped up efforts have made the US wary of China's catch-up. However, Washington needs to realize that protectionist instincts could backfire and harm US interests.



As top US leaders pledge to bring jobs back home, the government risks doing the opposite and single-handedly killing jobs in its semiconductor industry if it reinforces export control and restrictions on Chinese investment. As one of the world's largest consumers of semiconductors, China has been one of the largest markets for the US and has generated a significant amount of revenue for US firms.



According to a Goldman Sachs report in 2015, a whopping 83 percent of US chipmaker Skyworks Solutions' revenues came from China while 61 percent of Qualcomm's sales were from China. Possible restrictions on China mean that these sales and investment would decline, which will eat into US jobs and have a ripple effect on the economy.



Above all, locking China out of the US market won't stop China from moving forward but instead will prompt the country to step up efforts to develop its own semiconductor industry. Although the US has long dominated the industry, China is on track to change that. The Chinese government has committed to investing $150 billion to boost homemade integrated circuits to 70 percent by 2025. The development of the semiconductor industry requires a long-term and consistent commitment from both the government and private sector. As long as they follow through, China catching up won't be a distant prospect.



The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn