The Bureau of Industry and Security added more than 100 entities to the Entity List and released a new set of semiconductor-related export controls on Dec. 2, introducing new license requirements for both U.S.-origin and foreign-produced chip tools and publishing new red flag guidance on how companies should be vetting Chinese chip factories.
Exports to China
China’s Foreign Ministry objected to a new set of export controls the U.S. is reportedly planning to announce in the coming days, saying it’s opposed to the “U.S. overstretching the concept of national security, abusing export control measures and making malicious attempts to block and suppress China.” A ministry spokesperson told reporters Nov. 25 that the new controls would disrupt international trade and global supply chains. “China will take resolute measures to firmly defend the legitimate and lawful rights and interests of Chinese companies,” the spokesperson said.
The U.S. government likely needs to change the way it's trying to convince Japan, the Netherlands and other allies to impose export controls on a broader set of semiconductor manufacturing equipment, including by potentially offering them economic incentives and loosening some existing export restrictions, researchers said in a new report this month. The authors also said the Bureau of Industry and Security should survey American chip toolmakers to better understand global chip markets, which can help it maximize the effectiveness of its current export restrictions.
China has been “consistently” building a set of policy tools it can use to retaliate against the U.S. and other countries in response to trade controls or other restrictions, and companies could soon start seeing China deploy those tools more frequently, said David Hathaway, a consultant on China issues for The Asia Group.
South Korea should be invited to join the Group of 7 nations because of its willingness to work with the U.S. and other allies in imposing sanctions and export controls against Russia, the country’s former foreign affairs minister said this week.
The U.S. government should create a joint interagency task force led by the national security adviser to develop better ways to prevent China from obtaining sensitive dual-use technology from the U.S. and its allies, a bipartisan congressionally mandated commission said Nov. 19.
Chinese President Xi Xinping raised concerns about U.S. export controls during what was expected to be his last meeting with President Joe Biden before Donald Trump takes office (see 2411140018), warning the U.S. against pursuing policies that could lead to the decoupling of the two economies.
Chinese and South Korean officials met in China last week for an export control “consultation” to share information about their respective export restrictions, according to an unofficial translation of a Chinese Ministry of Commerce notice. The officials also held “in-depth exchanges” with industry officials who also attended the meeting, China said. “The two sides agreed to further strengthen communication and cooperation, promote the development of bilateral compliant trade, and jointly maintain the stability and smoothness of the global industrial chain and supply chain.”
A letter reportedly sent by the Commerce Department ordering Taiwan Semiconductor Manufacturing Company to stop shipments of advanced semiconductors to certain Chinese customers (see 2411120011) is a “serious violation of international economic and trade rules” and a “gross interference in free trade,” a Chinese commerce ministry spokesperson said last week.
The next Trump administration is likely to build on Biden’s outbound investment executive order and semiconductor export controls against China, researchers said last week, and could double down on sanctions against Iran and Venezuela in a return to the “maximum pressure” campaign Trump embraced during his first term.