During a recent House Appropriations subcommittee hearing, US Commerce Secretary Howard Lutnick made controversial accusations against China, asserting that the nation is engaged in the copying of American technologies. He called for stricter enforcement of US export controls, claiming these measures are essential to prevent China from obtaining critical technologies in sectors such as artificial intelligence and aviation.

Lutnick emphasized the necessity of increased funding for the Department's Bureau of Industry and Security (BIS), which is responsible for overseeing export control efforts. He argued that additional resources would enable more inspectors to monitor compliance with US sales limits to China and other perceived adversaries.

While Lutnick's assertions were aimed at securing more budgetary provisions, Chinese experts responded dismissively to his claims. They characterized the allegations as unfounded and politically motivated, mainly serving as a pretext for justifying America's stringent tech export policies.

Veteran telecom expert Ma Jihua contested Lutnick's statements, stating that the notion of China copying technology is baseless. He argued that the US restrictions are less about national security and more about preserving its monopoly in the semiconductor and high-tech sectors.

Moreover, Ma pointed out that the US blockade has paradoxically led to significant revenue losses for American companies like NVIDIA, which have been cut off from the lucrative Chinese market. In contrast, China has seized the opportunity to boost its own semiconductor production capabilities and invest in research and development.

Jensen Huang, CEO of NVIDIA, acknowledged in May that the potential of China's artificial intelligence market could reach approximately $50 billion in the near future. He indicated that failing to engage with this market would represent a considerable loss for US firms.

Additionally, Christophe Fouquet, CEO of ASML, raised concerns regarding government policies adversely affecting long-established supply chains. He warned that such measures could obstruct technological advancements and inadvertently incentivize China to develop a robust domestic semiconductor industry.

Fouquet cautioned that export bans can lead to counterproductive outcomes. He suggested that policymakers shift their focus from merely hindering economic rivals like China to fostering innovation within the technology sector.

In response to the increasing US restrictive measures, Chinese authorities have vehemently criticized these actions as discriminatory. China's Ministry of Commerce articulated that the US has violated previously agreed-upon consensus during economic talks and has further escalated tensions with a series of trade restrictions.

The US actions range from implementing AI chip export controls to halting the sale of chip design software and revoking visas for Chinese students. Such measures, according to the ministry's spokesperson, have severely undermined China's legitimate economic interests.

Overall, these developments highlight the complex and evolving dynamics between the US and China in the realm of technology and trade, with each side accusing the other while navigating a landscape increasingly defined by rivalry and restraint.