Reported in Reuters: China semiconductor trade association establishes work group with U.S. counterpart.

The China Semiconductor Industry Association (CSIA) has set up a working group with US technology companies to help deal with issues such as “export controls and supply chain security.”

CSIA announced the new partnership on Thursday, and there’s already speculation that President Biden could ease some trade restrictions against Chinese semiconductor firms to reduce the global chip shortage. This would benefit Huawei Technologies and Semiconductor Manufacturing International Corporation (SMIC), both reeling from chip shortages.

The working group is expected to promote “deeper mutual understanding and trust” between the Chinese and US semiconductor companies. CSIA’s counterpart is the Washington-based Semiconductor Industry Association (SIA); they have yet to announce the new partnership.

William Deng, an analyst at UBS in Hong Kong, said the working group could create better communication among industry players to avoid market imbalances.

“Even if the US restrictions remain, better communication [between Chinese and US semiconductor industry players] can help mitigate supply chain disruptions,” Deng said. “A company in the value chain may have a better idea how to manage its inventory and production with [help from] the working group,” he added.

That said, Deng was quick to note the Biden administration will not lift key export bans of certain technologies placed on China by the former Trump administration. Over the past year, shortages of semiconductors have caused production cutbacks among major automobile factories worldwide. The shortages are widespread and are from electronics to medical devices to technology and networking equipment.

Supply chain disruptions originated from the virus pandemic. Even before that, the Trump administration limited chips to Huawei Technologies, ZTE, and other Chinese firms; the combination of the pandemic and restrictions has culminated in a worldwide shortage.