TAIPEI, Taiwan – The United States announced a new semiconductor export control package against China, curbing exports to 140 companies, its latest major effort to block China’s access to and production of chips capable of advancing artificial intelligence for military purposes.
China has intensified its efforts to achieve self-sufficiency in the semiconductor sector in recent years, driven by export restrictions on advanced chips and manufacturing tools imposed by the U.S. and other countries. Despite this push, China still lags significantly behind the leading players in the chip industry.
The new package includes curbs on China-bound shipments of high bandwidth memory chips and new curbs on 24 additional chipmaking tools and three software tools, according to the U.S. Department of Commerce’s Bureau of Industry and Security on Monday.
The bureau also established new foreign direct product controls for certain semiconductor manufacturing equipment items that originate in foreign countries, but are produced with U.S. technology, software or tools.
While equipment produced in countries such as Israel, Malaysia, Singapore, South Korea, and Taiwan will be subject to the rule, Japan and the Netherlands will be exempt.
“This action is the culmination of the Biden-Harris Administration’s targeted approach, in concert with our allies and partners, to impair the PRC’s ability to indigenize the production of advanced technologies that pose a risk to our national security,” said Secretary of Commerce Gina Raimondo, referring China to its official name, the People’s Republic of China.
Chinese firms facing new restrictions include nearly two dozen semiconductor companies, two investment companies and more than 100 chipmaking tool makers, including Naura Technology Group, Piotech, ACM Research and SiCarrier Technology as well as Swaysure Technology, Si’En Qingdao, and Shenzhen Pensun Technology, which work with China’s Huawei Technologies.
China vowed to take “resolute measures” in response to the new export curbs.
“We have repeatedly made clear our position on this issue. China firmly opposes the U.S.’ overstretching the concept of national security, abusing export controls, and maliciously blocking and suppressing China,” foreign ministry spokesperson Lin Jian told a press briefing.
“This type of behavior seriously violates the laws of market economy and the principle of fair competition, disrupts international economic and trade order, destabilizes global industrial and supply chains, and will eventually harm the interests of all countries,” he added.
Tough policy stance on China
The restrictions come as the U.S. President Joe Biden is set to leave office on Jan. 20 with President-elect Donald Trump expected to adopt a tough policy stance on China.
Trump said last month he would impose an additional 10% tariff on all products coming into the U.S. from China on his first day in office as penalties for deadly fentanyl and illegal immigrants, which he said were pouring across borders into the U.S.
RELATED STORIES
Explained: What is America’s ‘blacklist’- and does it really work against China?
Trade and tariffs to dominate US-China ties under Trump
Trump vows an additional 10% tariff on Chinese goods
Separately, on Saturday, the president-elect threatened to impose 100% tariffs on the BRICS nations if they were to create a rival currency to the U.S. dollar.
BRICS is an intergovernmental organization comprising nine countries, including China and Russia.
“We require a commitment from these countries that they will neither create a new Brics currency nor back any other currency to replace the mighty US dollar or they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy,” Trump wrote on his social media platform Truth Social.
Trump’s election victory sparked concern in China, where many expect the next president to take a tougher stand than his predecessor, particularly on trade and economic issues, with negative repercussions for an already struggling Chinese economy.
Edited by RFA Staff.