Biden Administration Considers Additional Restrictions on Chip Sales to China

According to knowledgeable sources, the Biden administration is reportedly contemplating additional restrictions on the sale of semiconductor equipment and artificial intelligence memory chips to China, aimed at increasing pressure on Beijing's technological ambitions, although these measures will fall short of some previously considered stringent actions.

Sources stated to Bloomberg News that the restrictions could be announced as soon as next week, emphasizing that the timing and specifics of the rules have changed multiple times, and nothing is final until published.

The measures follow months of negotiations by U.S. officials and discussions with allies in Japan and the Netherlands, as well as intense lobbying from American chip equipment manufacturers warning that harsher measures could bring devastating harm to their businesses.

These individuals noted that the latest proposal contains significant differences from previous drafts. One of the main points is which Chinese companies will be added to the trade restriction list. Officials revealed that the U.S. had previously contemplated sanctions on six suppliers to Huawei Technologies Co., the telecommunications giant at the center of China's tech industry, and that they were aware of at least half a dozen more suppliers. However, they are now planning to add only some of these Huawei suppliers to the asset list, specifically targeting ChangXin Memory Technologies Inc., which is attempting to develop artificial intelligence memory chip technology.