The U.S. Commerce Department has announced an expansion and update of its export controls to counter China’s attempts to acquire advanced computer chips and the associated manufacturing equipment. The revised controls build upon earlier measures initiated about a year ago to address concerns over the potential military applications of these chips, including their role in developing hypersonic missiles and artificial intelligence.
Commerce Secretary Gina Raimondo emphasized that these export controls are intended to safeguard technologies with clear national security and human rights implications. While the vast majority of semiconductor exports will remain unrestricted, the United States is committed to taking decisive action, in collaboration with its allies, to address identified threats to national security and human rights.
The updates are a result of industry consultations and technological assessments, and they introduce a “gray zone” for monitoring chips that could have military applications, even if they do not meet the thresholds for trade restrictions. Furthermore, chip exports can now be restricted to companies located in Macao or countries subject to U.S. arms embargoes, reducing the risk of circumventing controls to provide chips to China.
The revised controls also impose new requirements to make it more challenging for China to manufacture advanced chips abroad. The list of manufacturing equipment subject to export controls has been expanded, reflecting several changes in the policy.
Notably, last year’s introduction of export controls was met with frustration from the Chinese government, which viewed the design and manufacturing of high-level semiconductors as essential for its economic and geopolitical aspirations. Commerce Secretary Raimondo has reiterated that these restrictions are not designed to hinder China’s economic growth.
Despite a call between Raimondo and her Chinese counterparts in August, during which both sides agreed to exchange information about export controls, the parameters of the revised controls were not discussed with China. While the potential for improving U.S.-China relations will likely be on the agenda during Chinese government officials’ visit to San Francisco in November, President Joe Biden’s potential meeting with Chinese President Xi Jinping, scheduled for the Asia-Pacific Economic Cooperation summit, remains unconfirmed. Their meeting last year occurred shortly after the initial announcement of the export controls.