Biden Battles Allies and Tech Firms to Tighten Semiconductor Export Restrictions to China

The Biden administration is actively seeking to address resistance from allied countries and the tech sector as it gears up to broaden restrictions aimed at curbing China's capacity to manufacture the most sophisticated semiconductors, potentially enhancing Beijing's military capabilities.

Drafting New Regulations

As part of its strategy, the administration has developed new regulations that would impose limitations on the export of machinery and software used in chip production to China, particularly if these tools incorporate American components or technology. This also extends to certain types of semiconductors, as reported by individuals privy to the draft version of the regulations.

The primary objective is to obstruct the innovative methods that Chinese chip makers have employed to acquire technology, despite global restrictions already in place. The United States has been lobbying its allies, notably Japan and the Netherlands, to strengthen their restrictions on technology exports to China. This has involved high-level visits to these countries, including a Japanese state visit to Washington in April.

Resistance from the Tech Industry

However, there is considerable opposition from the tech sector in the United States and other nations, expressing concerns that these regulations could have adverse effects on their operations. Furthermore, it remains uncertain when or if foreign governments will implement these limitations, creating an air of uncertainty in the broader tech industry.