The U.S. has been “abusing export controls” and “politicizing tech and trade issues and using them as a tool and weapon” to “hold on to its hegemony and serve its selfish agenda,” Chinese foreign ministry spokesperson Mao Ning said in response to a question about a reported agreement on chip controls between the U.S., the Netherlands and Japan (see 2301270002). “China is firmly against this,” she said at a regularly scheduled press conference Jan. 30. “Such practices serve no one’s interests. They destabilize global industrial and supply chains and have given rise to global concerns.”

The upcoming U.S. outbound investment review tool probably won’t be used to unwind past deals, and will likely only target investments in specific, sensitive technology areas, said Laura Black, a former Treasury Department official. But she said companies still should prepare for a new outbound investment executive order and be ready for other jurisdictions to implement their own outbound investment controls, including in the EU.

A former undersecretary of Commerce now at the Center for Strategic and International Studies, Bill Reinsch, said there has been relatively little impact on chip companies and chipmaking equipment companies from export controls on sales to China announced last October (see 2210070049).

Japan and the Netherlands will soon join the U.S. in imposing export restrictions on certain advanced semiconductor machinery destined to China, Bloomberg reported Jan. 26. Although the three countries have been discussing the controls for months, the report said talks were expected to conclude Jan. 27 and would result in new, expanded Dutch restrictions on ASML and new Japanese controls on Nikon. The Netherlands will prevent ASML from selling “at least some” of its deep ultraviolet lithography machines to China (see 2301250022), with Japan setting “similar limits” on Nikon, the report said, adding that the countries haven’t yet decided on a date for a public announcement.

Despite requests from industry, the Bureau of Industry and Security may push back on publishing a comprehensive list of advanced Chinese semiconductor fabrication facilities that are subject to the October chip controls, said Kevin Wolf, an Akin Gump lawyer and former BIS official. But the agency could meet industry halfway and publish a list similar to its military end-user list (see 2012220027), which could be a regularly updated, noncomprehensive set of facilities subject to the agency’s China chip controls.

The Bureau of Industry and Security has drafted new guidance for its October rule that expanded certain China-related chip controls (see 2210070049) and hopes to release it soon, said Thea Kendler, the agency’s assistant secretary for export administration. Kendler, speaking during a virtual conference hosted by the Massachusetts Export Center last week, also touched on the rule’s expiring temporary general license and urged industry to submit feedback on the new restrictions before the deadline this week.

The U.S. should impose sanctions against China for allowing its companies to continue to supply semiconductors and other dual-use technologies to Russia, said Sen. Bob Menendez, chair of the Senate Foreign Relations Committee. Although the U.S. has penalized specific Chinese companies for supplying Russia -- including new sanctions this week -- Menendez said he wants to see a more “robust” set of measures.

The U.S. should double down on its resources, oversight and enforcement to prevent Russia from acquiring semiconductors and other dual-use goods used to power its war against Ukraine, the Silverado Policy Accelerator said in a report this week. If the broad Western export controls against Russia aren’t followed up with strict enforcement, the think tank said, Moscow will continue to find ways to import chips, including from China.

ASML, the Netherlands’ flagship semiconductor company, said it saw higher-than-expected fourth quarter revenue and expects a 25% increase in net sales this year despite challenges caused by existing and potential future export controls against China. The company also declined to predict whether the Netherlands will join the U.S. in imposing similar chip export restrictions but warned that broad controls could severely damage the semiconductor industry.

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