US expands export controls to target Chinese tech firms
The US expanded its trade restriction list by adding 140 companies, mainly Chinese semiconductor-toolmaking and software firms, to curb Chinese advancements in the high-tech sector.
Targets include Semiconductor Manufacturing International Corp., Huawei-linked companies, and top Chinese chipmaking equipment firms like Beijing Naura, ACM Research, and Piotech.
The Biden administration also imposed export restrictions on high-bandwidth memory of US origin, a key component for rapid data transfers in AI computing. Global providers like SK Hynix, Samsung Electronics, and Micron are affected.
The latest controls target semiconductor manufacturing equipment and software tools used in developing and producing semiconductor devices. This is the third significant update to the US strategy towards China’s chip sector.
American companies will be restricted from exporting to China without difficult-to-obtain license exemptions. The rules will be enforced starting December 31 for specific controls.
The US Commerce Department aims to strengthen national security by focusing on the “indigenous semiconductor ecosystem,” following previous control measures in October 2022 and October 2023.
“This action is the culmination of the Biden-Harris administration’s targeted approach, in concert with our allies and partners, to impair the PRC’s ability to indigenise the production of advanced technologies that pose a risk to our national security,” Commerce Secretary Gina Raimondo said in a news release.
The government implemented new rules to control foreign-produced semiconductor manufacturing equipment using US technology destined for China. Washington is urging the Netherlands and Japan to help restrict exports to China.
China’s Commerce Ministry strongly opposes the recent US actions and will protect its rights and interests. The ministry spokesperson criticised the US for disrupting global trade and market rules in the semiconductor industry, threatening the global supply chain stability.
In a final push before President-elect Donald Trump takes office in January, US President Joe Biden is working with allies like Japan and the Netherlands to limit China’s semiconductor production capabilities.
China is striving to become a global leader in science and technology, prompting these efforts to curb its advancements. Japan and the Netherlands, both housing significant chip manufacturers, have also imposed export restrictions this year.
The regulations targeting China aim to curb its technological advancements due to concerns about potential military applications. The Biden administration has placed 355 Chinese entities on the Entity List, with more added recently.
Additionally, it has enhanced collaboration with Japan and the Netherlands to tighten export controls on semiconductor manufacturing equipment.
Attribution: The Nikkie Asia
Subediting: M. S. Salama
