China

US Waives Export Curbs for Some Non-Chinese Chipmakers

OCT 12 2022·Updated OCT 13 2022

Story

Image credit: Getty Images [via CNBC]

The Facts

The US government has allowed at least two non-Chinese chipmakers operating in China to receive restricted goods and services without their suppliers seeking licenses, industry sources have said.
Al Jazeera
Previously, the Biden administration said that they would grant licenses to supply non-Chinese chip factories on a case-by-case basis. However, Wednesday's news suggests a circumvention of US prohibitions on the industry, as Chinese chipmakers currently face a presumption of denial when it comes to production licenses.
Al Jazeera
Export curbs on the Chinese chip industry - intended to slow technological and military advances in China - require licenses to be granted before US exports can be shipped to facilities with advanced chip production in the nation.
Reuters
The new rules also mean that vendors cannot support, service, or send non-US supplies to China-based factories without licenses if American companies or people are involved. Critics say this may cause supply chain issues, as companies could be forced to shut down without the resources or support they require.
Channelnewsasia
Restrictions are part of a larger goal of restricting China's ability to, "obtain advanced computing chips, develop and maintain supercomputers, and manufacture advanced semiconductors", according to the White House. The US also claims that China's investment in supercomputing has enabled the nation "to monitor, track, and surveil their own citizens."
Sky News

Sources Split

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The Spin

Pro-China narrative

Biden's restrictions will not affect Chinese markets, only dampen US exports. China has retained a large market for its data chips, and the vast majority of customers for Chinese companies fall outside the specification that would see them subjected to restrictions established in the CHIPS act.

Tech Wire Asia

Anti-China narrative

Chips developed by Chinese companies could be used to produce advanced weaponry systems or even weapons of mass destruction. US restrictions on semiconductor production will protect American interests and security while also ensuring American technological leadership and innovation.

Sky News