U.S. imposes new controls on chip exports to China

The Biden administration on Monday instituted a new round of restrictions targeting the export of advanced semiconductor chips and manufacturing equipment to China.

This move by the Commerce Department's Bureau of Industry and Security builds on previous measures aimed at curbing China's ability to develop cutting-edge technologies, particularly artificial intelligence and military applications.

The new export controls place 140 manufacturers and investment companies on the Entity List, a U.S. compilation of "foreign individuals, companies, and organizations deemed a national security concern."

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

The new controls will also block the sale of high-bandwidth memory, which is necessary for artificial intelligence. Semiconductors can be a strategic asset for AI systems, supercomputing, and other technologies for both civilian and military use.

Sullivan continued, "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."

According to a U.S. Government Accountability Office report, semiconductors, also known as computer chips, are typically smaller than a postage stamp and are composed of billions of components that can store, move and process data.

Advanced semiconductors can be used for artificial intelligence, including in medical diagnosis and for military purposes, such as modeling nuclear explosions.

The U.S. has been tightening down on the export controls on semiconductors to China since concerns over U.S. capacity to produce advanced semiconductors domestically when shortages began during the pandemic.

This concern resulted in Congress enacting the CHIPS Act of 2022.

Chinese foreign ministry spokesperson Lin Jian responded. "This type of behavior seriously violates the laws of market economy and the principle of fair competition, disrupts international economic and trade order, destabilizes global industrial and supply chains, and will eventually harm the interests of all countries," Jian said.

Beijing intends to take firm, resolute measures to defend the interests of Chinese companies, he added.

Assistant Secretary of Commerce for Export Administration Thea D. Rozman Kendler said, "The PRC's Military-Civil Fusion strategy presents a significant risk that advanced node semiconductors will be used in military applications that threaten the security of the United States, as well as the security of our allies and partners."