US – government enacts toughest export restrictions yet against China’s chip industry

US – government enacts toughest export restrictions yet against China’s chip industry

Washington, Oct. 8, 2022

Citing risks to national security, the U.S. government over the weekend imposed new export restrictions aimed at denying China access to tools, chips and software for AI computing and other applications. The Biden administration said the goal is to block the technology from Chinese companies and prevent it from getting into the hands of the Chinese military and surveillance network.

The rules are considered the most comprehensive ever enacted by the U.S. against China’s chip industry. They make it harder for Chinese companies to access advanced chips and hinder their progress in developing supercomputers and artificial intelligence used in military applications.

U.S. manufacturers will have to obtain a license from the U.S. Commerce Department to export certain chips and devices that were not previously covered by the rules. Some advanced computing capabilities that rely on U.S. chips contribute to China’s „military modernization,“ which includes the development of weapons of mass destruction, according to a senior administration official.

The rules prohibit U.S. companies from exporting certain chip-making tools to China. They also prohibit U.S. companies and citizens from providing assistance to Chinese firms engaged in advanced chip manufacturing.

The U.S. has placed 31 Chinese companies on a list of „non-vetted“ companies, which could result in them being placed on the so-called entity list that prohibits U.S. companies from supplying them.