US imposes new export restrictions on China’s chip industry
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The United States announced new export restrictions Monday targeting China's ability to make advanced semiconductors, drawing swift condemnation from Beijing as competition deepens between the world's two biggest economies.
The moves step up US efforts to tighten curbs on exports of state-of-the-art chips to China, aiming to hinder the country's ability to make chips that can be used in advanced weapons systems and artificial intelligence.
The announcement comes weeks before President-elect Donald Trump returns to the White House, where he is expected to advance Washington's hawkish stance on China.
"The United States has taken significant steps to protect our technology from being used by our adversaries in ways that threaten our national security," said National Security Advisor Jake Sullivan in a statement.
He added that Washington will keep working with allies and partners "to proactively and aggressively safeguard our world-leading technologies and know-how so they aren't used to undermine our national security."
Beijing vowed Monday to defend its interests, with a Chinese commerce ministry spokesperson saying the United States "abuses export control measures" and has "hindered normal economic and trade exchanges."
The latest US rules include a restriction of exports to 140 companies, including Chinese chip firms Piotech and SiCarrier Technology.
They also impact Naura Technology Group, which makes chip production equipment, according to the Commerce Department.
Others include entities in Japan, South Korea and Singapore.
Being added to the "entity list" restricts US suppliers from exporting to them without additional permission.
The new US rules also include controls on two dozen types of chipmaking equipment and three kinds of software tools for developing or producing semiconductors.
"We are constantly talking to our allies and partners as well as reassessing and updating our controls," noted Under Secretary of Commerce for industry and security Alan Estevez.
Military focus
The efforts further a policy beginning under Trump's first administration, to hold back Beijing's ability to gain ground and become a leading tech economy.
On Monday, Commerce Secretary Gina Raimondo stressed that President Joe Biden's government has been especially tough in "strategically addressing China's military modernization through export controls."
"The semiconductor manufacturing equipment controlled by today's rules is needed to produce advanced-node integrated circuits, which are necessary for advanced weapon systems and advanced AI used in military applications," the Commerce Department said.
It added that overall, the actions are to slow China's development of advanced AI that could "change the future of warfare," and impair China's development of its own semiconductor ecosystem.
But the department maintained that this is in line with Washington's "small yard, high fence" strategy -- an approach that Chinese President Xi Jinping last month urged against.
Calls to further close the semiconductor supply chain have grown since the world became increasingly aware of the powers of AI, with the launch of ChatGPT.