WASHINGTON (TDI): The United States has announced new export restrictions aimed at limiting China’s access to advanced semiconductor technologies, a move that has been swiftly condemned by Beijing.
This action escalates the ongoing competition between the world’s two largest economies, as Washington seeks to curb China’s access to cutting-edge chips that are crucial for advanced weapons systems and artificial intelligence.
The restrictions, which come just weeks before President-elect Donald Trump is set to return to the White House, are part of Washington’s broader efforts to block the flow of state-of-the-art technologies to China.
Trump is expected to adopt a more aggressive stance on China during his second term.
National Security Advisor Jake Sullivan defended the move, stating, “The United States has taken steps to protect our technology from being used by our adversaries in ways that threaten our national security.”
He further emphasised that the U.S. would continue working with allies and partners to safeguard its technologies and prevent their misuse.
Beijing’s Response:
In retaliation, China has vowed to defend its interests. A Chinese commerce ministry spokesperson criticized the U.S., claiming it “abuses export control measures” and hinders normal economic and trade exchanges.
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Lin Jian, a spokesman for China’s Ministry of Foreign Affairs, added that the U.S. actions disrupt global trade and supply chains. Beijing also stated that it would take measures to protect the rights of its companies.
The Chinese Ministry of Commerce accused the U.S. of engaging in “economic coercion” and employing “non-market practices.”
Details of the New Restrictions:
The new U.S. rules impose restrictions on 140 Chinese companies, including semiconductor firms Piotech and SiCarrier, requiring special approval for any sales to these entities.
Moreover, the measures affect Naura Technology Group, which produces chip manufacturing equipment, as well as companies in Japan, South Korea, and Singapore.
The restrictions also include controls on dozens of types of chip-making equipment and software tools used in semiconductor development.
Under Secretary of Commerce for Industry and Security Alan Estevez stated, “We are constantly talking to our allies and partners as well as reassessing and updating our controls.”
Military Focus and Strategic Goals:
The new restrictions are seen as part of a broader U.S. strategy to slow China’s development of advanced artificial intelligence, which could potentially revolutionize military technology.
According to the U.S. Commerce Department, these measures aim to hinder China’s progress in both AI and semiconductor capabilities, which are essential for military modernization.
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Thibault Denamiel, a fellow at the Center for Strategic and International Studies, noted that while the latest actions align with the trajectory of U.S. policy, their significance is diminished by the more drastic measures promised by the incoming Trump administration.
The restrictions build on a policy initiated during Trump’s first term, which sought to prevent China from becoming a dominant global tech power.
Commerce Secretary Gina Raimondo highlighted that the Biden administration has specifically focused on addressing China’s military advancements through export controls, with the aim of stalling China’s progress in AI and semiconductor manufacturing.
The U.S. maintains that these efforts align with its “small yard, high fence” policy, which seeks to impose strategic, targeted restrictions. Chinese President Xi Jinping criticized this approach in a recent statement, further intensifying the ongoing economic and technological rivalry between the two nations.
