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

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The US calls on Japan and the Netherlands, allies in chip production, to impose stricter controls on China

The US government, under President Biden, is encouraging Japan and the Netherlands to impose stricter controls on their exports of chip manufacturing equipment to China. This comes after the discovery that Huawei and SMIC created their chips using technology from two American suppliers.

The United States is encouraging Japan and the Netherlands to tighten controls on the export of semiconductor manufacturing equipment to China. This comes amid concerns over progress made by Chinese technology firms like Huawei and SMIC, which are on the blacklist.

In October 2022, the US put in place export limitations to obstruct China from obtaining high-powered semiconductors for possible military use. The Netherlands and Japan, known for their proficiency in manufacturing high-grade chipmaking machinery, partnered with the US in imposing export constraints on advanced machines and parts.

In spite of the actions taken, companies from China such as Huawei and Semiconductor Manufacturing International Corporation (SMIC), both of which are banned by the US, revealed 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 control measures to fix loopholes in the current rules. They are considering actions such as limiting the export of simpler machinery and imposing restrictions on maintenance and fixing of machines previously purchased by Chinese customers prior to the establishment of these controls.

There are ongoing initiatives to streamline export controls, with The Hague urging Brussels to prevent the division of controls within the EU. Simultaneously, Washington is trying to get South Korea to implement comparable controls, even though the country's companies 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 vital equipment components to Chinese organizations under sanctions, following a halt in deliveries from American companies because of export restrictions.

Last summer, Chinese purchases of overseas semiconductor machinery dramatically increased to unprecedented levels. This was before regulations were imposed by the Dutch and Japanese, suggesting that Chinese chip manufacturers were gearing up for the anticipated limitations.

China's Foreign Minister, Wang Yi, has criticized the US's attempts to limit China's reach to high-end technologies. He described these actions as strategies to oppress China and cautioned that they could backfire on the US.

Discussions among the US and its partners emphasize the escalating strain around technology shipments to China, as nations strive to harmonize economic pursuits with worries about national safety.

(Incorporating information from various sources)

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