Washington further restricts China’s purchase and manufacturing of semiconductors

published on Saturday 08 October 2022 at 11:56 am

Washington on Friday announced updates to its export control rules, a move intended to further complicate the manufacture and purchase of semiconductors in China.

“These upgrades will limit the PRC’s ability to purchase and manufacture certain high-end chips used in military applications,” the Commerce Department’s Bureau of Industry and Security (BIS) said.

“Our actions will protect the national security and foreign policy interests of the United States while sending a clear message that American technology leadership is as much about values ​​as it is about innovation,” said Under Secretary of Commerce for Exports Thea Rozman Kendler, quoted in a sentence.

The move comes days after the Pentagon blacklisted 13 Chinese companies for their alleged ties to the military. A world leader in drones, DJI is the best known of the targeted Chinese companies.

Asked, a spokeswoman for Chinese diplomacy, Mao Ning, criticized on Saturday the restrictions intended, according to her, to “maintain technological hegemony” in the United States.

The manufacture and export of semiconductors are the subject of a fierce battle between the two economic powers for technological dominance.

– Put the brakes on China –

Washington regularly accuses Beijing of industrial espionage and threats to national security.

This conflict has taken on a new dimension since the semiconductor shortage linked to the Covid-19 crisis.

US President Joe Biden thus managed to get Congress to approve, at the end of July, a law that releases 52,000 million dollars in subsidies to reactivate the production of semiconductors in the United States, and tens of billions more for research and development .

The export controls updated on Friday “limit China’s ability to source advanced computer chips, develop and maintain supercomputers and manufacture advanced semiconductors,” according to the BIS.

These components “are used by the PRC to produce advanced military systems, including weapons of mass destruction; to improve the speed and accuracy of its military decision-making, planning, and logistics, as well as its autonomous military systems; and to commit violations of human rights,” he said.

US Trade Representative Katherine Tai told a Senate committee in June that the Biden administration was focused on protecting US business interests against China’s plans to dominate major industries like semiconductors. .

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