White House announces new restrictions on chip exports to China

Published Fri, Oct 7, 2022 · 09:35 PM

THE Biden administration announced new restrictions on China’s access to US semiconductor technology, adding measures aimed at stopping Beijing’s push to develop its own chip industry and advance the country’s military capabilities. 

The Commerce Department added more names to a list of companies that it regards as “unverified”, meaning it does not know where their products end up being used. The 31 additions are all Chinese. That means US suppliers will face new hurdles in selling technologies to those entities.

The move is the next step in trying to break the link between Chinese companies and their country’s military and security apparatus. That conduit is seen as a possible back door allowing China to update its military and surveillance capabilities using US technology.

Anyone receiving the unverified designation has to submit to checks on where their products go and, while that process is ongoing, anyone who supplies them with US technology will be required to go through extra certification steps related to the use of the products.

Successfully proving they are not breaking rules allows the companies to be removed from the list. Not doing so – or failing to cooperate – risks putting them on the so-called entity list, meaning that all exports to them of US technology are subject to prior approval by the Commerce Department.

Bloomberg reported this week that the administration was readying new restrictions, part of a broader strategy that also includes bolstering domestic chip production. Earlier this year, Biden signed a bill that promises to infuse about US$52 billion into the US semiconductor industry. BLOOMBERG

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

VIEW ALL

KEYWORDS IN THIS ARTICLE

READ MORE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

International

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here