US Chip Makers Fear Trap in a Trade Deal with China

choi

Bob Davis, US Chip Makers Fear Trap in a Trade Deal with China. Wall Street Journal, Mar 19, 2019 (front page).
https://www.wsj.com/articles/u-s ... e-offer-11552936389

four consecutive paragraphs:

"Last year, the US exported $6.7 billion of chips to China but that vastly understates the importance of the Chinese market to the US firms.  

"Many chips from such companies as Micron and Intel enter China from factories outside the US, including in Malaysia and elsewhere in Southeast Asia. US companies sell about $80 billion of chips used in China, estimated Mr [president Handel] Jones of IBS ['International Business Strategies, Inc, a Los Gatos, Calif, chip-research firm']. Other estimates put the total higher.  

"Overall, about 90% of the $250 billion in chips used in Chinese manufacturing are supplied by foreign firms, INS estimated.

"The US semiconductor industry rebuffed the $200 billion [over six years] proposal, arguing that the only way it could hit those targets was by remaking its supply chain so that assembly and testing operations, now often done in SouthEast Asia, would be moved to China.

Note:
(a) The report is locked behind paywall. There is no need to read the rest.
(b) Maybe because the report did not do a good job, I could not understand why American chip makers fears a set quota that China should buy such an amount of chips a year. But the last quotation may help.
(c) Please view the only (blue) graphic (heading: "China's Chips[:] China relies heavily on foreign suppliers for its semiconductor supply") of this report -- by search images.google.com with the author and title (or the heading).