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Biden’s leadership will have to manage the interests of U. S. corporations and allied governments as it tries to shut down China’s access to complex chips.
By Ana Swanson
Ana Swanson covers U. S. industry and generation controls
The Biden leadership is struggling to triumph over opposition from allied countries and the tech industry as it prepares to expand restrictions aimed at curbing China’s ability to make the most complex semiconductors possible, which could be used only for military capabilities. Beijing.
The administration has drafted new regulations that would restrict shipments to China of machinery and software used to make chips from various countries if they are made with American parts or technology, as well as certain types of semiconductors, according to other people who have noticed or been briefed on a draft edition of the regulations.
The regulations are intended to block some of the new avenues that Chinese chipmakers have discovered to obtain technology, despite foreign restrictions.
The United States has forced allies such as Japan and the Netherlands to tighten restrictions on generation shipments to China, stopovers to those countries and a Japanese state stopover to Washington in April. These countries are home to corporations that produce chip-making machines, such as ASML Holding N. V. But the industry in the United States and other countries has argued that regulations may simply hurt them, and it’s not yet clear when or if foreign governments will impose limits.
Meanwhile, some of the regulations the United States is pursuing would have significant exclusions, the resources said. Regulations blocking shipments of devices to certain semiconductor factories in China would not apply to more than 30 allied countries, including the Netherlands, South Korea and Japan. .
This has sparked a backlash from U. S. companies, who say gambling regulations will be even more unfavorable to them if the U. S. government stops their sales, but not those of their competitors.
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