The Biden administration has announced broader restrictions on advanced technology sales to China, targeting the country’s chip industry and aiming to slow down its military modernization efforts. The new rules significantly expand existing trade bans, adding over 100 Chinese companies to a restricted trade list and prohibiting the sale of certain types of chips and machinery.
The move is part of the Biden administration’s efforts to address national security concerns related to China’s growing chip industry, which is seen as crucial for powering artificial intelligence and supercomputers. The rules have been criticized by some officials and analysts for containing carve-outs that may be favorable to industry interests, while others argue they represent a significant expansion of US authority.
The new regulations will bar shipments to China of certain advanced memory chips and establish global restrictions on the sale of equipment used to manufacture chips. They also contain guidance for US companies to carry out due diligence on Chinese factories they sell to.
Critics say the administration could have taken a more aggressive approach against major Chinese chip makers linked to the country’s technology development efforts. The rules do not include many facilities currently under construction that could soon be buying large amounts of equipment from China.
China has already responded by expanding its own export-control laws and creating an “unreliable entity list” to penalize companies that undermine national interests. Beijing is likely to take targeted actions against US technology companies in China, according to analysts.
The move reflects the growing tensions between the US and China over advanced technologies, with both countries recognizing each other as rivals on the world stage. Global companies are struggling to navigate this divide, with China remaining an essential economic partner while also posing a national security threat.
Source: https://www.nytimes.com/2024/12/02/business/economy/biden-china-chips-exports.html