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In September, China set a record for purchases of foreign-made chips
China’s General Administration of Customs Releases Data on China’s Trade in September. It was interesting for us to know that China has set a new monthly record for the purchase of foreign-made chips. In September, the country imported 53.72 billion microcircuits for a total of 256.93 billion yuan ($ 38.17 billion). In theory, this is a huge scope for import substitution, but China will not be able to abandon foreign suppliers overnight.
From January to September inclusively, 387.18 billion integrated circuits were imported into the Celestial Empire, which is 23% more than in the same period last year. Coronavirus pandemic failed to reverse the development of the country’s economy. China spent 1.767 trillion yuan on the purchase of imported chips in the first nine months, which is approximately equal to $ 262.5 billion and 16.6% more than in the same period last year.
The aggregate “West” also cannot and will not want to give up this money, which means that attempts by the current US administration to impose sanctions against China will run into one or another type of sabotage. Fears “I can’t, a competitor can” will force business to look for loopholes in any political and economic barrier.
China set previous record for chip imports in July. Then, in a month, 46.9 billion units of various microcircuits were imported into the country. The purchase took 207.65 billion yuan ($ 30.85 billion). In the first three quarters, China’s total merchandise imports and exports and trade totaled 23.12 trillion yuan ($ 3.43 trillion), up 0.7% from the first three quarters of last year. The amount of turnover turned out to be more significant than analysts expected, and for the first time this year showed annual growth. This year’s economy hit by the SARS-CoV-2 coronavirus pandemic is definitely good news.