New Chinese bylaw allows Chinese companies to sue non-US companies that comply with US chip bans


Sep 28, 2018
The new trade regulation, being touted as Beijing’s latest counterattack to the “extraterritorial excesses” of United States’ bans targeting Chinese firms – will make third-party, non-American entities in China punishable if they adhere to Washington’s punitive demands such as stopping supplies of goods or services.

One inference based on the article can be that the US bans that forbid TSMC from shipping its chips made with US technology or know-how to Huawei will be covered by the new Chinese by-law and that TSMC may even fall afoul of it.

Taiwanese, Japanese, South Korean and other foreign companies that run large manufacturing facilities in China but also rely on American technologies for their products now have to navigate carefully through the Beijing-Washington tech war with potential penalties from both sides.

Many foreign firms, especially those in the tech sector, are still browsing through the text of the bylaw to try to work out Beijing’s intent and are seeking advice from their legal consultants.

Also read:
In an 11th-hour decision in response, Huawei reportedly scrambled in early May to order about US$700 million worth of 7-nanometer chips from its key supplier TSMC, having got wind of the additional sanctions.

It is believed that Huawei is sitting on a massive inventory of chips and other key components, enough to power future models at least for the rest of the year.

However, some chips will become outmoded when TSMC and other companies launch newer chips along with new handsets that will hit the market later this year.


Aug 13, 2017
China steals enough tech on their own. There is no reason to do business there as their laws require companies to hand over technology to do so. Companies will do this just to make money. US companies dont have US interests at heart. Nor should they I guess but this has to stop. We need quit china all together, we have created a monster and our own worst and powerful enemy. Built on American dollars and know how.

There IS a good guy and bad guy here. If you can't figure that out, you are naive. When you live in a country that is at the top of the heap - globalization is a loser cause. I just wish the US would stop playing the sucker as well. Will the US lose in the short term on a china pull back? Certainly. In the long run, this move is a win for the security and economic future of the US.

Unfortunately, I expect things to change shortly - more to the way things were - going backwards and kissing china ass. Too bad, all that effort will probably go to waste.