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The US is encouraging chip-manufacturing partners such as Japan and the Netherlands to impose stricter regulations on China
The Biden administration is requesting that Japan and the Netherlands enhance export restrictions on chip-manufacturing equipment to China. This comes after it was discovered that Huawei and SMIC used technology from two US providers to develop their chips.
The US is pushing Japan and the Netherlands to tighten controls on the export of chip-making machinery to China. This is due to concerns about the progress made by prohibited Chinese tech firms like Huawei and SMIC.
In October 2022, Washington introduced export regulations to impede China's attempts to procure high-performance semiconductors for possible military use. The Netherlands and Japan, recognized for their proficiency in creating cutting-edge chipmaking machinery, partnered with the US in implementing export limitations on complex machines and parts.
Even with these precautions, Chinese companies such as Huawei and Semiconductor Manufacturing International Corporation (SMIC), both of which are banned by the US, stated in August that they have created a sophisticated chip utilized in Huawei’s Mate 60 series phone.
The Biden government is urging Tokyo and The Hague to bolster regulations to fix loopholes in the current rules. Potential actions may involve limiting the export of simpler machines and imposing restrictions on maintenance and repair for machines previously purchased by Chinese customers prior to the enforcement of these controls.
Initiatives to organize export regulations are in progress, with The Hague urging Brussels to dodge the division of controls within the EU. Concurrently, Washington is pursuing comparable regulations from South Korea, despite the fact that South Korean firms do not produce equipment as sophisticated as those hailing from the Netherlands and Japan.
There has been worry about Japanese and South Korean semiconductor firms supplying crucial components to Chinese organizations under sanctions, after US firms halted deliveries due to export restrictions.
Last summer, before Dutch and Japanese regulations were put into place, Chinese chip manufacturers significantly increased their imports of foreign semiconductor equipment, suggesting they were getting ready for the upcoming restrictions. This resulted in a record high in import levels.
China's Foreign Minister, Wang Yi, criticized US strategies to limit China's reach to high-end technologies. He described these maneuvers as attempts to hinder China and alerted that they could backfire on the US.
Discussions among the US and its allies highlight the escalating strain around tech exports to China. The countries are struggling to maintain a balance between their economic ambitions and the need for national security.
(Incorporating information from various sources)
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