New US measure regarding chip restrictions in China

The United States plans to tighten sweeping measures to restrict China’s access to advanced semiconductors and chip-making equipment to prevent it from acquiring cutting-edge technologies that could give it a military advantage.

According to sources, the Biden administration is attempting to tighten controls on the sale of graphics chips and advanced chip production equipment for artificial intelligence applications to Chinese companies. The United States will also impose additional controls on Chinese companies that try to evade export restrictions by routing their shipments through other countries.

As part of the Biden administration’s moves to block chip exports, the United States will take new steps in the coming period to block U.S. chipmakers from selling semiconductors to China that exceed government restrictions, an official told Reuters. .

RESTRICTIONS STARTED LAST YEAR

The new rules will be in addition to restrictions announced last October. Updates were expected this week, but those timelines are often delayed, sources said.

The Biden administration announced chip restrictions on China last year, saying they were necessary for national security. China also accelerated investments to develop its own local production following the restrictions.