US vs. China: New Semiconductor Regulations Threaten Global Tech Balance

The Biden administration is trying to overcome resistance from allied nations and the technology industry by pushing for tougher regulations on semiconductor exports to China.

The new rules aim to restrict China’s access to advanced chip manufacturing technology, potentially bolstering Beijing’s military capabilities.

The proposed rules would restrict exports of semiconductor-making machines and software to China if they include American technology, along with certain types of semiconductors, The New York Times reported. The move is intended to close loopholes that Chinese chipmakers have exploited to obtain technology despite existing international restrictions.

The United States has pressured allies like Japan and the Netherlands to tighten their own controls on technology exports to China. Those countries, home to major chipmaking companies like ASML and Tokyo Electron, have faced American diplomatic pressure, including during Japan’s recent state visit to Washington.

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But there are growing concerns among industry stakeholders that the restrictions could disadvantage American companies, The New York Times added. The new rules are expected to exempt more than 30 allied countries, including the Netherlands, South Korea and Japan, leading to concerns about an uneven playing field for American companies.

While U.S. officials continue to negotiate with allies to strengthen those restrictions, some analysts are skeptical that they will achieve those goals. In response, China has criticized the U.S. for allegedly abusing export controls and hopes other nations will resist U.S. economic pressure.

The details of the policy remain uncertain and subject to change, but the new rules are clearly intended to strengthen existing measures aimed at restricting the development of cutting-edge AI chips in China.

Reservation:This content was generated in part using AI tools and was reviewed and published by Benzinga editors.

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