US lawmakers have criticized the government’s new chip sanctions against China, alleging that loopholes still allow Chinese semiconductor makers to access advanced technology. The new export rules aim to restrict the development of chipmaking tools in China, but critics argue that they do not provide sufficient safeguards.
The main drawback of the new rules is that they are based on a fab-by-fab approach rather than an entity-by-entity approach. This means that facilities with stricter controls may still be able to procure sensitive technology from other sites. For example, SMIC Beijing is subject to stringent denial policies, while SMIC Shanghai can produce high-end chips without restrictions.
The chairman of the House Select Committee on the CCP wrote a letter to Gina Raimondo, Secretary of Commerce, highlighting these loopholes and criticizing the lack of uniformity in the new rules. He suggested that stronger counter-diversion restrictions be established for facilities near each other to prevent circumvention.
While the new rules have added 140 Chinese entities to the Entity List, which restricts dealings with them by American companies, critics argue that more needs to be done to address potential loopholes and vulnerabilities. The US government has justified its concerns by pointing out China’s rapid progress in chipmaking technology.
Source: https://www.tomshardware.com/tech-industry/us-lawmakers-fire-back-at-governments-chip-sanctions-against-china-alleging-glaring-loopholes-that-let-china-access-the-latest-technology