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US encourages allies such as Japan and Netherlands to enforce stricter limitations on China
The Biden administration is encouraging Japan and the Netherlands to tighten up export controls on chip manufacturing equipment to China. This comes after it was discovered that Huawei and SMIC created their chip using technology from two American suppliers.
The US is pressuring Japan and the Netherlands to tighten controls on the export of chipmaking equipment to China. This is due to concerns about the progress made by prohibited Chinese tech firms like Huawei and SMIC.
In October 2022, the US introduced export restrictions to prevent China from obtaining high-performance semiconductors for possible military uses. Both the Netherlands and Japan, known for their skills in manufacturing advanced chip-making equipment, supported the US's move by imposing export limitations on refined machinery and parts.
In spite of these actions, Chinese companies such as Huawei and SMIC, both of which have been banned by the US, revealed in August that they have created a sophisticated chip used in Huawei’s Mate 60 series phone.
The Biden administration is urging Tokyo and The Hague to increase restrictions to handle deficiencies in the current regulations. Potential actions could involve limiting the exports of simpler machines and establishing restrictions on maintenance and repairs for machines previously purchased by Chinese customers prior to the introduction of these controls.
Initiatives to streamline export regulations are in progress, with The Hague urging Brussels to prevent the disintegration of controls within the EU. Concurrently, Washington is pursuing similar regulations from South Korea, despite the fact that the nation's businesses don't produce technology as sophisticated as that of the Netherlands and Japan.
There are worries about Japanese and South Korean semiconductor firms supplying crucial equipment components to sanctioned Chinese organizations. This comes after American companies halted deliveries due to export restrictions.
Last summer, Chinese chip manufacturers significantly increased their import of foreign semiconductor equipment, reaching unprecedented levels. This spike, which occurred before controls from the Netherlands and Japan were implemented, suggests that the Chinese were anticipating incoming limitations.
China's Foreign Minister, Wang Yi, criticized the US's attempts to limit China's reach to high-tech resources, describing them as strategies to oppress China. He also cautioned about the possible adverse consequences for the US.
Discussions among the US and its partners highlight the escalating strain related to tech exports to China, as nations attempt to harmonize their financial pursuits with their worries about national security.
(Incorporating information from various sources)
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