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The US is encouraging allies such as Japan and the Netherlands in the chipmaking industry to impose stricter rules on China
The Biden government is pushing for Japan and the Netherlands to enhance the limitations on chipmaking equipment exports to China. This comes after it was discovered that Huawei and SMIC created their chip with technology from two American providers.
The US is encouraging Japan and the Netherlands to tighten controls on the export of semiconductor manufacturing equipment to China. This comes from concerns over the progress made by Chinese tech firms like Huawei and SMIC, which are on the US trade blacklist.
In October 2022, Washington set up export regulations to obstruct China's attempts to acquire high-performance semiconductors for possible military uses. The Netherlands and Japan, countries known for their proficiency in manufacturing advanced chipmaking tools, partnered with the US by imposing export limitations on complex machinery and parts.
Even with the actions taken, Chinese companies such as Huawei and Semiconductor Manufacturing International Corporation (SMIC), who are both on the US's blacklist, made a statement in August declaring 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 strengthen their regulations in order to fill the gaps in the current rules. Potential actions may comprise limiting exports of less advanced machines and putting restrictions on maintenance and repairs for machines previously purchased by Chinese customers prior to the enforcement of these controls.
Initiatives are being taken to organize export controls, as The Hague urges Brussels to prevent the division of controls within the EU. Concurrently, Washington is also pursuing comparable controls from South Korea, even though the country's businesses don't produce equipment as sophisticated as those from the Netherlands and Japan.
Worries have emerged about Japanese and South Korean chip-making businesses supplying crucial equipment components to Chinese firms facing sanctions. This follows the halt of shipments by American companies in response to export restrictions.
Last summer, Chinese purchases of overseas semiconductor equipment hit unprecedented levels before the enforcement of Dutch and Japanese regulations, suggesting that Chinese chip manufacturers were gearing up for imminent limitations.
China's Foreign Minister, Wang Yi, criticized the US for trying to limit China's ability to obtain advanced technologies. He described these actions as attempts to stifle China and cautioned that they could backfire on the US.
Discussions between the US and its allies highlight the escalating strain around tech exports to China, as nations try to weigh their economic gains against issues of national safety.
(Incorporating information from various sources)
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