The United States is preparing to roll out its third major semiconductor export restrictions for China’s technology sector. If implemented, the new measures will affect around 140 companies, including the Naura Technology Group. This move reflects ongoing efforts by the Biden administration to limit China’s progress in artificial intelligence and military applications by restricting access to advanced semiconductor technology.
Broader sanctions to limit chip access
Under the proposed measures, US toolmakers such as Piotech and SiCarrier Technology could face tighter restrictions, and the export of advanced memory chips and up to 24 chipmaking tools to China may be banned entirely, according to Reuters. These restrictions will also extend to high-bandwidth memory chips, vital for AI training.
The sanctions aren’t limited to the US. Equipment produced in Israel, Malaysia, Singapore, South Korea, and Taiwan could also fall under these controls. Additionally, more than 100 Chinese chip equipment manufacturers and two investment firms, Wise Road Capital and Wingtech Technology, could be added to the US entity list. Once on the list, companies are prohibited from doing business with US suppliers without special licences, which are rarely approved.
China fights back against restrictions
While the new sanctions could disrupt China’s tech industry, Beijing hasn’t been caught off guard. It has been actively working to boost domestic chip production and reduce its dependence on foreign suppliers.
Chinese Foreign Ministry spokesman Lin Jian has previously criticised these measures, calling them harmful to global trade. He stated that China would impose countermeasures to protect its companies and maintain its competitiveness in the semiconductor industry.
The impact of these restrictions on companies like Semiconductor Manufacturing International Corporation (SMIC), which has faced US sanctions since 2020, could be significant. Under the new wave of restrictions, SMIC and others may encounter even stricter controls.
A continuation of existing policies
This third round of restrictions builds on a broader set of measures introduced in October 2022, marking a consistent effort by the Biden administration to address concerns over China’s growing technological capabilities. As the US government prepares to transition leadership, with Donald Trump set to assume office, experts believe these anti-China policies are unlikely to change significantly.
For now, the tech rivalry between the two global powers shows no signs of slowing, as the US takes another step to curb China’s access to critical technology while Beijing seeks to bolster its self-reliance.
