Biden’s New Regulations To Control China’s Access To Semiconductor Industry
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For the first time in U.S. history, U.S. export controls on China have expanded to block “U.S. persons”, both citizens and permanent residents, from supporting the development or production of certain high-end semiconductor chips that could advance Chinese tech applications from military use and artificial intelligence to supercomputers. According to Nikkei Asia, this could potentially affect hundreds of executives and professionals with U.S. citizenship in China’s chip industry, including founders and C-suite executives.
According to former Department of Transportation official and U.S. political expert Steven Okun, speaking at an American Club of Singapore event on Thursday, Oct. 13, 2022, the new regulations announced on Friday, Oct 7, 2022, do not just stop AI chips and semiconductor manufacturing equipment from reaching China, they also force U.S. nationals working at related Chinese companies to resign. Okun offered these observations below:
- One part of the executive order specifies that U.S. persons, citizens or green card holders, cannot work in the Chinse semiconductor industry.
- There are a lot of Chinese Americans who are currently working in that industry in China. They have the choice between quitting their job and returning to U.S. (or at least quitting and not working in China any more), or they would have to give up their U.S. citizenship.
Okun also said that the Biden administration certainly plans outbound investment restrictions aimed at China, with further elaborations:
- Currently, we have the Committee on Foreign investment in the United States (CFIUS), so if a foreigner wants to buy a seaport, or utilities, or other critical infrastructure, it must be approved by the Treasury Department before that foreigner is allowed to buy that asset in the United States. That is an inbound investment restriction.
- In the future, what we might be facing is a reverse CFIUS, meaning: before a U.S. company can buy a Chinese company, it has to first get approval by the United States. This has never happened before, other than with military technology, but it is now going to be a much broader outbound investment review than we’ve ever had before. One consequence of such a reverse CFIUS is that venture capital firms in other countries (such as Singapore) that invest in tech companies in China and raise money from sources that include U.S. citizens will have to seek permission from Uncle Sam before buying Chinse companies.
In the video published by Yahoo Finance, as “Semiconductors: U.S. is ‘putting the choke’ on China’s computing capabilities, professor says“, below:
In the video published by Chris Norlund, as “China Semiconductor Chip Industry Americans May Be Forced to Resign“, below:
Former DFAT Australia-China Council scholar Andrew Phelan says the US sanctions recently imposed on the export of high-end computer chips to China have had a “dramatic” and immediate effect on manufacturing in the country, in the video published by Sky News Australia, as “US computer chip export rules having ‘dramatic effect’ on Chinese manufacturing“, below:
US chip-equipment makers are taking action to comply with new regulations to limit sales to Chinese customers. Applied Materials Inc., KLA Corp. and Lam Research Corp. are set to have began or are preparing to withdrawing staff from China’s most advanced maker of memory chips, Yangtze Memory Technologies Co. Stephen Engle reports on Bloomberg Television, in the video published by Bloomberg Markets and Finance, as “US Chip Suppliers Pull Back From China’s Yangtze After Biden Ban“, below:
The Biden administration is planning to announce new restrictions on China’s access to US semiconductor technology, according to people familiar with the matter. Stephen Engle reports on Bloomberg Television, in the video published by Bloomberg Markets and Finance, as “US Announce New China Chip Limits“, below:
US President Joe Biden has imposed sweeping controls on exports of semiconductors to China. Also known as ‘semis’ or ‘chips’, semiconductors are needed to run nearly all electronics. American companies will be restricted from selling advanced chips to China, and supplying Chinese firms with tools to make their own. China has accused the US of weaponizing technology, in the video published by Al Jazeera English, as “What’s behind US export controls on technology to China?| Inside Story“, below:
The Biden administration on Friday announced new restrictions on China’s access to US semiconductor technology. China says the move will harm supply chains and the world economy. Tony Czuczka reports on Bloomberg Television, in the video published by Bloomberg Markets and Finance, as “China Says Biden’s New Chip Curbs Will Harm Recovery“, below:
Gathered, written, and posted by Windermere Sun-Susan Sun Nunamaker More about the community at www.WindermereSun.com
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