US Urges Chipmaking Allies to Tighten Restrictions on China Amid Tech Advances by Blacklisted Companies

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The US is asking for support from chipmaking partners such as Japan and the Netherlands to impose stricter controls on China

The Biden administration is encouraging Japan and the Netherlands to increase limitations on the export of chipmaking machinery to China. This comes after discovering that Huawei and SMIC have created their chips with technology from two American suppliers.

The United States is encouraging Japan and the Netherlands to tighten control on the exportation of chipmaking machinery to China. This comes from concerns about the progress made by prohibited Chinese tech firms like Huawei and SMIC.

In October 2022, the US introduced export regulations to obstruct China's attempts to procure high-performance semiconductors for possible military use. The Netherlands and Japan, both known for their proficiency in manufacturing cutting-edge chipmaking equipment, allied with the US in imposing export limitations on complex machinery and parts.

Even with the restrictions in place, Chinese companies such as Huawei and SMIC, both prohibited by the US, declared in August that they had created a sophisticated chip used in Huawei's Mate 60 series phone.

The Biden government is urging Tokyo and The Hague to enhance controls to fill the loopholes in the current rules. Potential actions could involve limiting the export of less advanced machinery and setting boundaries on maintenance and repairs for machinery previously purchased by Chinese customers before the controls were put into effect.

Initiatives are in progress to organize export regulations, with The Hague pushing Brussels to prevent the disintegration of such regulations within the EU. Concurrently, Washington is also pursuing comparable controls from South Korea, even though the country's companies are not producing equipment as sophisticated as those from the Netherlands and Japan.

There are worries about Japanese and South Korean semiconductor firms supplying vital components to Chinese firms under sanctions after US companies halted deliveries due to export restrictions.

Last summer, Chinese purchases of overseas semiconductor machinery reached unprecedented levels prior to regulations from the Netherlands and Japan. This suggests that Chinese semiconductor producers were gearing up for the upcoming limitations.

China's Foreign Minister, Wang Yi, criticized the US for attempting to limit China's ability to acquire advanced technologies. He described these attempts as strategies to undermine China and cautioned that they could potentially backfire on the US.

Discussions among the US and its allies highlight the escalating strain related to tech exports to China, as nations attempt to maintain a balance between economic gains and national security worries.

(Incorporating information from various sources)

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