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US Set to Close Loopholes in Curbs on Chip Tools For China

The updated chip export rules are expected to add restrictions and close loopholes in those unveiled late last year, which angered Beijing and strained relations with Washington

Flags of China and U.S. are displayed on a printed circuit board with semiconductor chips, in this illustration
Flags of China and the US are displayed on a printed circuit board with computer chips, in this Reuters file image.


The United States is set to update its regulation banning exports of US chipmaking equipment to China.

A government posting shows the rule is in the final stages of review, and a source confirmed that Biden Administration officials are ready to tighten restrictions on Beijing.

The news follows a report on Monday that US officials warned China in recent weeks to expect rules restricting shipments of semiconductor equipment and advanced AI chips to China to be updated this month.

The updates would add restrictions and close loopholes in rules first unveiled on October 7, 2022, sources say. Those rules angered Beijing and further strained relations with Washington.


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A regulation titled, “Export controls to Semiconductor Manufacturing Items, Entity List Modifications,” was posted on the Office of Management and Budget (OMB) website on Wednesday.

A person familiar with the matter, who requested anonymity, confirmed the posting refers to the expected restriction on sending chipmaking tools to China.

Export control rules are generally not posted by OMB until there is agreement between the Departments of State, Defense, Commerce and Energy on their content, former officials said.

An anticipated companion rule updating restrictions on exports of high-end chips used for artificial intelligence has yet to be posted by the government.

A source said the Biden administration is seeking to publish both rules simultaneously. A spokesperson for the US Department of Commerce declined comment.


  • 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.


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