U.S. Vs. China: New Semiconductor Rules Threaten Global Tech Balance

The Biden administration is working to overcome resistance from allied nations and the tech industry as it seeks to impose stricter regulations on semiconductor exports to China.

The new rules aim to limit China’s access to advanced chip-making technology, potentially bolstering Beijing’s military capabilities.

Proposed regulations would restrict exports of semiconductor production machinery and software to China if they involve American technology, along with certain semiconductor types, reported The New York Times. This move is intended to close loopholes Chinese chipmakers have exploited to acquire technology despite existing international restrictions.

The U.S. has been pressuring allies such as Japan and the Netherlands to tighten their own tech export controls to China. These countries, home to major chip-making machinery firms like ASML and Tokyo Electron, have faced U.S. diplomatic pressure, including during a recent Japanese state visit to Washington.

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However, there is growing concern among industry stakeholders that these restrictions might disadvantage U.S. companies, The New York Times added. New rules are expected to exempt over 30 allied countries, including the Netherlands, South Korea, and Japan, leading to fears of an uneven playing field for American firms.

While U.S. officials continue to negotiate with allies to strengthen these restrictions, some analysts are skeptical about achieving these goals. In response, China has criticized the U.S. for allegedly misusing export controls and hopes other nations will resist American economic pressure.

Details of the policy remain uncertain and could change, but the forthcoming rules are clearly aimed at reinforcing existing measures to curb China’s development of cutting-edge AI chips.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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