A new Bureau of Industry and Security license exception that could allow U.S. exporters to continue shipping certain advanced technologies to a list of close American allies is promising, but it presents some “limitations” if not implemented correctly, the Center for Strategic and International studies said this week.
No policy option available to the U.S. government, including lifting export controls, will persuade China to stop trying to de-Americanize and decouple its semiconductor equipment sector, the Center for Strategic and International Studies argued in a new report this week.
The Bureau of Industry and Security added more than 100 entities to the Entity List and released a new set of semiconductor-related export controls on Dec. 2, introducing new license requirements for both U.S.-origin and foreign-produced chip tools and publishing new red flag guidance on how companies should be vetting Chinese chip factories.
China’s Foreign Ministry objected to a new set of export controls the U.S. is reportedly planning to announce in the coming days, saying it’s opposed to the “U.S. overstretching the concept of national security, abusing export control measures and making malicious attempts to block and suppress China.” A ministry spokesperson told reporters Nov. 25 that the new controls would disrupt international trade and global supply chains. “China will take resolute measures to firmly defend the legitimate and lawful rights and interests of Chinese companies,” the spokesperson said.
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The U.S. government likely needs to change the way it's trying to convince Japan, the Netherlands and other allies to impose export controls on a broader set of semiconductor manufacturing equipment, including by potentially offering them economic incentives and loosening some existing export restrictions, researchers said in a new report this month. The authors also said the Bureau of Industry and Security should survey American chip toolmakers to better understand global chip markets, which can help it maximize the effectiveness of its current export restrictions.
The leaders of the House Select Committee on China said Nov. 25 that they have asked for a briefing on how the Treasury Department is responding to Hong Kong’s growing role in sanctions evasion.
The Treasury Department on Dec. 9 will hold an inaugural conference on its new outbound investment security program, which will place new prohibitions and notification requirements for U.S. outbound investments in China’s semiconductor, artificial intelligence and quantum sectors beginning in January (see 2410280043). Registration for the conference ends Dec. 2. It will be held at the Treasury building in Washington; an agenda hasn't yet been released.
China has been “consistently” building a set of policy tools it can use to retaliate against the U.S. and other countries in response to trade controls or other restrictions, and companies could soon start seeing China deploy those tools more frequently, said David Hathaway, a consultant on China issues for The Asia Group.
The Senate Homeland Security and Governmental Affairs Permanent Subcommittee on Investigations, which has been looking into how U.S. computing chips have ended up in Russian weapons, hopes to issue a new report on its work before year’s end, the panel’s chairman said Nov. 20.