New US chip sanctions to deal
fresh blow to China’s self-reliance push
Upcoming US Sanctions: The US plans to impose new export restrictions, targeting roughly 200 Chinese semiconductor companies, including Huawei’s chip manufacturing partners.
Targeted Areas: These sanctions will affect Chinese semiconductor equipment and material suppliers, as well as venture capital firms with ties to the industry, and upstream suppliers like special gas providers.
Impact on Self-Sufficiency: While China has made progress in domestic semiconductor technologies like etching and film deposition, it remains dependent on high-end imported tools, leaving it vulnerable to US restrictions.
Escalating Rivalry: The move continues the US strategy to limit China’s access to advanced AI chips and chipmaking tools, citing concerns over potential military applications.
Chinese Response: China condemned the planned curbs, promising measures to protect its business interests, as its government pushes for technological self-reliance amidst ongoing US pressures.
China’s semiconductor industry is bracing for new shocks, as the US prepares to add several major chip equipment and materials suppliers on the mainland to its trade restriction list, dealing a fresh blow to the country’s push for technological self-reliance, according to two people familiar with the matter.
Several chip fabrication plants and manufacturing partners of Huawei Technologies, which has been under US sanctions since 2019, will be among roughly 200 Chinese companies included in the updated export controls to be announced later this week or early next week, the sources said.
Washington’s move is expected to also affect venture capital firms with close ties to the Chinese semiconductor sector, as well as upstream companies such as special gas suppliers, according to one of the people who was briefed on the situation, but declined to be named because of the sensitivity of the matter.
The US Commerce Department’s Bureau of Industry and Security declined to comment on Wednesday. China’s foreign ministry spokeswoman Mao Ning condemned the planned US trade curbs and said Beijing would take resolute measures to defend mainland business interests.
The new sanctions are set to mark a major escalation in the US-China tech rivalry since October 2023, when the Biden administration tightened its export restrictions introduced in 2022 targeting the mainland’s semiconductor industry, citing concerns that advanced technology could be used to enhance Beijing’s military capabilities.
Read the full article: Tech war: new US chip sanctions to deal fresh blow to China’s self-reliance push
