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The US encourages allies in chip production such as Japan and the Netherlands to impose stricter regulations on China
The Biden administration is encouraging Japan and the Netherlands to enforce stricter export regulations on chipmaking equipment to China. This comes after it was discovered that Huawei and SMIC created their chips using technology from two American suppliers.
The US is pressing Japan and the Netherlands to tighten controls on the export of semiconductor manufacturing gear to China. This is due to concerns about the progress made by Chinese tech firms like Huawei and SMIC, which are on the US trade blacklist.
In October 2022, the US introduced export regulations to disrupt China's attempts to procure high-performance semiconductors for possible military use. The Netherlands and Japan, which are known for their proficiency in manufacturing advanced chip-making tools, supported the US by imposing export constraints on complex machinery and parts.
Even with these restrictions in place, Chinese companies such as Huawei and Semiconductor Manufacturing International Corporation (SMIC) – both of which are banned by the US – declared in August that they had created a sophisticated chip used in Huawei's Mate 60 series phone.
The Biden administration is urging Tokyo and The Hague to enhance their controls to fix loopholes in the current rules. Potential actions could involve limiting the export of simpler machines and imposing restrictions on maintenance and repairs for machines that Chinese customers purchased prior to the enforcement of these controls.
Initiatives to streamline export regulations are in progress, with The Hague urging Brussels to prevent division of controls within the EU. Simultaneously, Washington is seeking comparable regulations from South Korea, even though the country's corporations don't produce equipment as sophisticated as those made in the Netherlands and Japan.
There are worries about Japanese and South Korean semiconductor firms supplying crucial equipment components to Chinese organizations under sanctions. This follows the halt of shipments from American companies due to export restrictions.
Last summer, China significantly increased its importation of foreign semiconductor equipment, reaching unprecedented levels. This spike occurred prior to Dutch and Japanese regulations, suggesting that Chinese chip manufacturers were bracing for forthcoming limitations.
China's Foreign Minister, Wang Yi, has criticized the US's attempts to limit China's access to high-end technologies. He described these attempts as strategies to hold back China and cautioned that they could also negatively impact the US.
Discussions among the US and its allies highlight the escalating strain around tech exports to China. Nations are trying to maintain a balance between their financial interests and issues related to national security.
(Incorporating information from various sources)
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