The semiconductor sector is extremely interdependent and globalized. Despite this China aims to achieve more self-sufficiency and technological development. This study aims to explain the instances...Show moreThe semiconductor sector is extremely interdependent and globalized. Despite this China aims to achieve more self-sufficiency and technological development. This study aims to explain the instances in which the Chinese state is successful in achieving its objectives in the semiconductor sector. Through the following research question: How can Chinese economic statecraft explain whether the Chinese State is able to control the semiconductor industry successfully ? By applying the theory of Chinese economic statecraft, this thesis incorporates the role and agency of firms in the analysis. Through case studies of Hisilicon and SMIC , the thesis explores the variables which explains whether the state is successful in achieving its objectives by incentivizing firms to align their operations with state objectives despite initial incompatible goals. Additionally, an unintentionality factor is added to account for external shocks faced by firms in the Chinese semiconductor sector.Show less
This thesis explores the neomercantilist dynamics in the US-China chip war, a critical geoeconomic rivalry of the modern era where superpowers vie for dominance in semiconductor technology. By...Show moreThis thesis explores the neomercantilist dynamics in the US-China chip war, a critical geoeconomic rivalry of the modern era where superpowers vie for dominance in semiconductor technology. By analyzing the strategies and policies of both the United States and China, this study investigates the alignment of their actions with neomercantilist theory and assesses the implications for global economic and geopolitical dynamics. The research reveals that both nations employ neomercantilist strategies such as trade protectionism, industrial policy, strategic resource control, and technological nationalism to secure their economic and national security interests. The findings highlight the resurgence of protectionist policies reminiscent of the 19th century, challenging the post-Cold War principles of free trade and globalization. The thesis concludes by discussing the broader implications for the global semiconductor industry, international trade relations, and geopolitical stability, emphasizing the need for collaborative international frameworks to manage the intersection of trade, technology, and security.Show less
Self-reliance has been an aspirational long-term goal for China due to the country's easy access to foreign technology and knowledge, but its national semiconductor development over the last decade...Show moreSelf-reliance has been an aspirational long-term goal for China due to the country's easy access to foreign technology and knowledge, but its national semiconductor development over the last decade has been directly challenged by a U.S.-led multilateral export control regime. Consequently, the situation calls for an examination of China's path choices concerning these tensions in the semiconductor industry. So far, contributions by International Relations (IR) theories lack consideration of China's fluctuating strategic priorities in response to global shifts. This thesis therefore uses the analytical concepts of historical institutionalism to explore China’s economic policy development in the semiconductor industry from 2014 to 2024 and structures the research around the critical juncture of the U.S.-led sanction regime towards China that commenced on October 7, 2022. To provide a foundation of knowledge on China’s current economic strategies in the microchip tech war, a scoping review was conducted to systematically map recent studies (March 2023–March 2024) and trace the dynamic process of China’s strategic path choices, which may aid EU Member States and policy practitioners in framing China in their international agenda on semiconductors. The findings suggest that China 1) has demonstrated a deliberate commitment to caution in its foreign policy to maximize strategic advantages over technology, 2) aims to deter future U.S. action by reinforcing its techno-economic statecraft and domestic economic competitiveness, and 3) has increased efforts to enhance worldwide reliance on China through its comparative advantages and technological standards for critical technologies, including AI and 5G.Show less
