US Targets China’s Chip Industry In Export Restrictions
The US Department has announced a new set of export restrictions that target China‘s semiconductor industry by further restricting that nation’s access to US chip technology as world powers inevitably move closer to a new Cold War.
The new limitation document, which was posted on the Department of Commerce‘s website on Friday, forbids the transfer of US-made chips to China without an export license for use in Artificial Intelligence and supercomputers.
The new regulations also prevent US persons and organizations from cooperating with Chinese chip producers unless they have been given special approval, as well as the selling of technology and equipment for chip fabrication to Chinese firms.
Some of the restrictions, according to the journal, will go into effect this month, in October. “Prevent sensitive technologies with military applications from being obtained by (China‘s) military, intelligence, and security services,” is the stated goal of the new export limits.
According to RT, the US placed YMTC, the largest manufacturer of memory chips in China, and 30 other Chinese corporations on a list of “unverified” businesses, indicating that US officials cannot investigate them in order to issue export licenses.
The impacted businesses could ultimately be completely banned by Washington, according to the article, which would practically prevent US corporations from providing them with any technology.
According to Reuters, China’s Foreign Ministry spokesman Mao Ning described the new regulations as unfair and predicted that they would backfire, saying that they would undoubtedly “harm the interests of US enterprises.”
Ning claims that “the US has been misusing export control procedures to willfully impede and cripple Chinese firms in order to retain its sci-tech monopoly… It will undermine not just the legal rights and interests of Chinese companies but also those of US enterprises.
He told reporters on Saturday that it would “hinder international trade and scientific cooperation, inflict a blow to global supply networks and world economic recovery.”
Taiwan, home to Taiwan Semiconductor Manufacturing, the world’s largest contract chipmaker, announced it will abide by the new US export limits targeted at China, its main trading partner.
The semiconductor sector in Taiwan has traditionally catered to consumers worldwide and places significant emphasis on legal compliance… The Taiwanese Economy Ministry responded to the US announcement with a statement that was cited by Reuters as saying that the country will cooperate with international customers’ requests and local consumer norms in addition to adhering to domestic rules and regulations.
In an effort to restrain and cripple Huawei, the top smartphone producer in China, access to US-made semiconductors has been prohibited since 2019.
The US government has criticized the Chinese corporation, leading to the so-called “Huawei ban,” as a result. Huawei’s business methods have undergone a significant adjustment as a result of this protracted conflict.
