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US Expects Allies to Back Chip Export Curbs on China

Senior Commerce official says US expects to sign a deal with allies in the near-term to support new rules launched to cut China’s access to advanced chipmaking tools.


A man looks at a semiconductor display at a trade fair in Shanghai
The US is currently winning the chips war, but an eventual outcome could be "a partial decoupling" of the chips ecosystem that forces countries to pick sides, an expert has warned. Photo: Reuters.

 

The United States expects to sign a deal with allies in the near-term to support new rules launched to cut China‘s access to sophisticated chipmaking tools.

That remark was made by a senior Commerce official said on Thursday, after the department published a sweeping set of export controls early this month.

The moves restrict Chinese access to US chipmaking technology and greatly expand its reach in its bid to slow Beijing’s technological and military advances.

However, there was some resistance on allies enforcing similar equipment curbs, as Japanese and Dutch firms Tokyo Electron and ASML Holding NV, plus US companies produce chipmaking equipment.

“We expect to have a deal in the near-term,” Undersecretary of commerce for industry and security Alan Estevez said in an interview with Washington-based think tank CNAS, when asked what it would take to get allies, particularly Japan and the Netherlands, to implement similar rules.

When asked what parts of the sprawling new China export rule could be included in a deal with allies, Estevez said “we’re looking at the whole gamut,” including chips as well as tools.

The rules cut China off from advanced semiconductor chips made anywhere in the world with US equipment.

But Estevez said countries could receive carveouts from the US measures if they implement similar regimes at home.

 

  • Reuters with additional editing by Jim Pollard

 

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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