US Announces New Export Controls On China’s Chip Sector

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New round of US semiconductor export restrictions designed to hamper Beijing’s capacity to produce high-end chips

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The United States has announced another round of export controls designed to thwart Beijing’s semiconductor ambitions – restrictions it has been threatening for a while now.

On Monday the US Department of Commerce’s Bureau of Industry and Security (BIS) announced “a package of rules designed to further impair the People’s Republic of China’s (PRC) capability to produce advanced-node semiconductors that can be used in the next generation of advanced weapon systems and in artificial intelligence (AI) and advanced computing, which have significant military applications.”

The United States added a staggering 140 companies to its ‘Entity List’, with Naura Technology Group, Piotech and ACM Research being among the largest Chinese companies to be included in the latest export controls list.

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New export controls

The Biden administration said this latest action “is a proactive measure enhancing the Department of Commerce’s work to impede the PRC’s ability to procure and produce the technologies necessary for its military modernisation.”

So what exactly is the US clamping down in its latest round of export controls?

Well besides the 140 Chinese firms now on the US trade blacklist, the latest US restrictions include new controls on 24 types of manufacturing equipment and three types of software tools used for developing semiconductors.

It comes after the effectiveness of US chip restrictions were questioned recently after reports revealed that a chip made by TSMC had been found in a Huawei product.

TSMC later suspended shipments to China-based chip designer Sophgo.

The US is seeking to address these violations, as the latest export restrictions include a new “red flag guidance” to address compliance concerns, and several “critical regulatory changes” to enhance the effectiveness of existing controls.

“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 indigenise the production of advanced technologies that pose a risk to our national security,” said US Secretary of Commerce Gina Raimondo.

US Secretary of Commerce Gina M. Raimondo.
Image credit US Government

“Further strengthening our export controls underscores the central role of the Department of Commerce in executing the United States’ broader national security strategy,” said Raimondo. “No Administration has been tougher in strategically addressing China’s military modernisation through export controls than the Biden-Harris Administration.”

“The United States has taken significant steps to protect our technology from being used by our adversaries in ways that threaten our national security,” added National Security Advisor Jake Sullivan.

“As technology evolves, and our adversaries seek new ways to evade restrictions, we will continue to work with our allies and partners to proactively and aggressively safeguard our world-leading technologies and know-how so they aren’t used to undermine our national security,” said Sullivan.

Previous US restrictions

The United States said that advancements in large-scale AI models have shown striking performance improvements across many human abilities and may be used in advanced military and intelligence applications.

These models have the ability to rapidly review and synthesise large amounts of information into actionable points, the US warned. Advanced AI models could be used for rapid response scenarios on the battlefield; lowering the barrier to develop cyberweapons or chemical, biological, radiological, or nuclear weapons; and utilizing facial and voice recognition to repress and surveil minorities and political dissidents, it stated.

The US has been steadily ramping up the pressure on Beijing.

For example in October 2022 the US announced its sweeping export controls for semiconductor manufacturing equipment and chips to China in October 2022, including banning the export of the A100 and more powerful H100 chips to mainland China and Hong Kong.

Then in October 2023 the US also banned the export of the slower A800 and H800, which had been specifically developed for sale to China.

The United States export restrictions of certain AI chips to China over national security concerns, went into force in April 2024.

In 2023 the United States reached an agreement between it, the Netherlands and Japan to keep chip-making equipment from China.

The US, the Netherlands and Japan are the only three countries that are home to manufacturers of advanced machines to print microchips.

China’s response is in a separate Silicon UK article.