Chip wars intensify with new US restrictions on semiconductors in China | American foreign policy

The United States announced new export restrictions targeting China's ability to manufacture advanced semiconductors, drawing swift condemnation from Beijing.

Washington is stepping up efforts to curb exports to China of cutting-edge chips that could be used in advanced weapons systems and artificial intelligence.

Monday's announcement came weeks before Donald Trump returns to the presidency, where he is expected to reinforce Washington's hawkish stance toward China. On Monday, Commerce Secretary Gina Raimondo said Joe Biden's presidency has been particularly tough in strategically addressing China's military modernization through export controls.

Biden national security adviser Jake Sullivan said: “The United States has taken important steps to protect our technology from being used by our adversaries in ways that threaten our national security. Washington would continue to work with allies and partners to proactively and aggressively protect our cutting-edge technologies and know-how so that they are not used to undermine our national security.

Beijing vowed to defend its interests on Monday, with a spokesperson for China's Commerce Ministry saying the United States is abusing export control measures and has hampered normal economic and trade exchanges.

The latest U.S. rules include restricting sales to 140 companies, including Chinese chip companies Piotech and SiCarrier, without additional authorization. They also impact Naura Technology Group, which makes chip production equipment, according to the Commerce Department. Others include entities in Japan, South Korea and Singapore.

The new U.S. rules also include controls on two dozen types of chipmaking equipment and three types of software tools intended for semiconductor development or production. We are constantly talking with our allies and partners and reassessing and updating our controls, said Alan Estevez, Undersecretary for Commerce, Industry and Security.

Dutch computer chip equipment maker ASML, which is the only maker of the most advanced chipmaking machines, said it does not expect new U.S. restrictions to affect its most recent financial forecasts .

ASML said the latest US restrictions would affect its exports of deep ultraviolet (DUV) lithography systems to some chip manufacturing plants in China, if enforced by the Dutch government. ASML is the only extreme ultraviolet (EUV) lithography machine manufacturer producing the most advanced chips. Due to existing government restrictions on the use of American technology, it already cannot sell EUV machines to China.

The Dutch government said separately Monday that it shared U.S. security concerns over the export of advanced semiconductor manufacturing tools and was studying the latest U.S. rules.

The U.S. Commerce Department said the new restrictions are aimed at slowing China's development of advanced AI that could change the future of warfare and hindering China's development of its own semiconductor ecosystem.

The agency argued that this is consistent with Washington's Small Yards and High Fences policy, which targets restrictions strategically, an approach that Chinese President Xi Jinping criticized last month.

Calls to further shut down the semiconductor supply chain have grown since the world became increasingly aware of the powers of AI, with the launch of ChatGPT.

Thibault Denamiel, a researcher at the Center for Strategic and International Studies, told AFP that the latest actions confirm the trajectory of US policy rather than significantly intensifying control efforts.

The significance of these additions is diminished given the new Trump administration's proposals, he added, noting that the president-elect has promised drastic measures that dwarf these latest restrictions on chip technologies.

With Agence France-Presse

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