Biden Targets China’s Chip Industry With Wider Trade Bans
The New York Times
New rules prohibit the sale of certain types of chips and equipment to China, in an effort to close loopholes and cement the Biden administration’s legacy in countering the U.S. rival.
The Biden administration announced on Monday broader restrictions on advanced technology that can be sent to China, in an effort to prevent the country from developing its own advanced chips for military equipment and artificial intelligence.
The restrictions will prohibit the sales of certain types of chips and machinery to China, and will add more than 100 Chinese companies to a restricted trade list. The move marks the Biden administration’s third major update over the past three years to a set of rules that have tried to cut China off from the world’s most advanced technology.
The rules are also likely to be the administration’s last on Chinese technology before President-elect Donald J. Trump’s inauguration next month, aiming to cement the Biden administration’s legacy in slowing down a rival country’s technological progress.
Commerce Secretary Gina Raimondo told reporters in a call on Sunday that the move represented “the strongest controls ever enacted by the U.S. to degrade the P.R.C.’s ability to make the most advanced chips that they’re using in their military modernization,” referring to the People’s Republic of China. She said the government had worked closely with experts, industry and allied countries to ensure that “our actions protect national security while minimizing unintended commercial consequences.”
National security officials have said that China’s ability to acquire and make advanced computer chips poses a threat to the United States. The chips are crucial for powering artificial intelligence and supercomputers that can be used to launch cyberattacks, design new weapons, erect surveillance systems and increase the military’s ability to respond accurately and rapidly to foreign attacks.
In October 2022, the Biden administration issued its first sweeping restrictions on China, by banning sales of advanced A.I. chips and certain chip-making machinery to the country. In October 2023, the Biden administration built on those rules to capture more types of A.I. chips.
