The China Association of Automobile Manufacturers (CAAM) has urged Chinese automakers to exercise caution in procuring US-made semiconductors following the latest round of US chips export controls. The restrictions, introduced this week, target 140 entities, including Chinese firms in the semiconductor sector.
In a statement, CAAM criticised the US government’s “arbitrary” changes to export control rules, stating that they have disrupted the stable supply of US chip products. The association warned that trust in US automotive chips is eroding, with concerns about reliability and security impacting procurement decisions.
CAAM emphasised the need to safeguard the security and stability of the automotive supply chain, advising caution among automakers when sourcing chips from US suppliers. High-end electric vehicles (EVs) in China frequently use Nvidia’s Orin series for smart driving systems and Qualcomm’s Snapdragon series for in-car systems, highlighting the critical role of US chips in the industry.
The association condemned the US export controls, labelling them a misuse of national security concerns to justify economic restrictions. It argued that these measures violate market economy principles, disrupt international trade, and harm global industrial stability.
“Automobile manufacturing is a globalized industry, and such unilateral actions harm the interests of all countries involved,” CAAM said, underscoring the interconnected nature of the sector.
Despite the challenges, CAAM reiterated its support for global cooperation. It encouraged international chip manufacturers to strengthen partnerships with Chinese automakers through joint research, investment, and development initiatives. “China’s rapid growth in the new energy vehicle (NEV) sector offers significant opportunities for global collaboration and innovation,” the statement noted.
CAAM’s concerns align with statements from other key organizations, including the Internet Society of China, the Chinese Semiconductor Industry Association, and the China Association of Communications Enterprises. These groups have also criticized the US export controls for their disruptive impact on global trade and economic stability.
As China’s automotive industry continues to grow, especially in the NEV sector, maintaining stable and secure supply chains remains a priority. The association’s warning highlights the broader implications of geopolitical tensions on critical industries.
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