US Pushes Chipmaking Allies to Tighten Restrictions on China Amid Security Concerns

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The US encourages allies such as Japan and the Netherlands to enforce stricter regulations on China's chipmaking

The Biden government is pressing Japan and the Netherlands to intensify export limitations on chipmaking equipment to China. This comes after the discovery that Huawei and SMIC used technology from two American providers to develop their chips.

The US is encouraging Japan and the Netherlands to bolster limitations on the export of equipment used in chip manufacturing to China. This is due to concerns about the progress made by Chinese technology firms like Huawei and SMIC, which are on the blacklist.

In October 2022, Washington imposed export limitations to obstruct Chinese attempts at procuring high-end semiconductors that could be used for potential military purposes. The Netherlands and Japan, both highly recognized for their skills in manufacturing high-tech chipmaking machinery, partnered with the US in implementing export bans on complex machines and parts.

Even with these precautions in place, Chinese companies such as Huawei and Semiconductor Manufacturing International Corporation (SMIC), both on the US blacklist, declared in August that they have created a sophisticated chip utilized in Huawei's Mate 60 series phone.

The Biden administration is urging Tokyo and The Hague to strengthen regulations to close loopholes in the current rules. This could involve limiting the export of more basic machines and imposing constraints on maintenance and repair for machines purchased by Chinese customers prior to the enforcement of these controls.

Initiatives to streamline export restrictions are in progress, with The Hague urging Brussels to prevent the division of regulations within the EU. Concurrently, the US is also pursuing comparable restrictions from South Korea, even though the country's firms do not produce equipment as sophisticated as those originating from the Netherlands and Japan.

Worries have been expressed about Japanese and South Korean chip manufacturers supplying essential machinery components to Chinese firms facing sanctions, after US firms stopped deliveries due to export restrictions.

Last summer, Chinese chip manufacturers significantly increased their import of foreign semiconductor equipment, reaching unprecedented levels. This was in anticipation of the controls from the Netherlands and Japan, suggesting that they were preparing for the upcoming restrictions.

China's Foreign Minister, Wang Yi, criticized the US's attempts to limit China's reach to high-level technologies. He characterized these moves as strategies to oppress China and cautioned about potential damage to the US as well.

Discussions among the US and its partners highlight the escalating strain around tech exports to China, as nations strive to align economic needs with issues of national safety.

(Incorporating information from various sources)

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