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Biden Administration Takes New Steps to Limit Chip Exports to China

Biden Administration Takes New Steps to Limit Chip Exports to China

The US has announced new export rules to prevent China from getting advanced chips or devices to make their own. It wants other countries to do the same.

Under the new rules, US players that make chip manufacturing tools, such as KLA, Lam Research and Applied Materials, can no longer supply chip companies wholly owned by China.

At the same time, more than thirty Chinese companies, including YMTC, are being blacklisted. Formally because the US was not allowed to inspect them, that is, US companies exporting to those companies must go through special steps, are often subject to restrictions, or must apply for a separate license.

The steps are part of a broader US approach that aims to prevent China from making advanced chips with US technology. The fear is that these chips are also used for military purposes. The country previously banned Nvidia from shipping two advanced chips for AI to China.

However, the plan is not completely watertight. For example, other countries are still free to sell technology to China. Speaking to Reuters, government officials acknowledge that it has not yet received promises of similar plans from allies. To what extent a player from Europe can purchase American chip technology and resell it to China is unclear.

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