Companies have experienced a loss of business and other negative financial effects as a result of the Bureau of Industry and Security’s October 2022 and October 2023 rules restricting exports of advanced computing chips and chipmaking equipment (see 2310170055), the Government Accountability Office said in a new report released Dec. 2.

The latest U.S. semiconductor-related export restrictions represent a strengthening of controls on China along with a “massive” expansion of foreign direct product rule restrictions, but they also include some head-scratching loopholes that chip firms will exploit, semiconductor policy researchers said this week.

The Bureau of Industry and Security will hold a virtual public briefing 3 p.m. to 4 p.m. EST on Dec. 5 about its new export controls on semiconductor manufacturing equipment (see 2412020016). Registration closes at 1 p.m. EST on Dec. 5.

A new set of U.S. export controls announced this week target a range of semiconductor manufacturing equipment, chip software tools, high-bandwidth memory and more, including by introducing new license obligations on certain foreign-made tools that the Bureau of Industry and Security said can be used by China to make advanced chips for its military. BIS also added more than 100 entities to the Entity List, most based in China, for aiding Beijing's military technology goals.

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.