The Biden administration is looking into the prospect of new export limits that would restrict China's access to some of the most potent upcoming computing technologies, according to sources who spoke to Bloomberg.
The plans, according to the sources who want to remain anonymous since they are still in the planning stages, are mostly focused on quantum computing and artificial intelligence software.
If successful, the initiatives would follow other limitations made public earlier this month that were intended to limit Beijing's use of sophisticated semiconductors in weapons and surveillance systems.
WASHINGTON, DC - OCTOBER 20: U.S. President Joe Biden speaks to members of the press prior to his Marine One departure from the White House on October 20, 2022 in Washington, DC. President Biden is traveling to Pittsburgh to discuss infrastructure and then to Philadelphia to campaign for U.S. Senate candidate John Fetterman.
Hindering China's Tech Capacity
The US has intensified efforts to hinder China's capacity to develop advanced technologies, which it views as essential in the struggle with its competition. The broad regulations unveiled earlier this month also restricted the participation of US citizens and residents in Chinese tech companies.
However, adding more restrictions around cutting-edge technologies runs the risk of further enraging China and compelling other nations to choose sides between the two largest economies in the world. Bloomberg's report claim that the new plans have been discussed with US allies.
One of the insiders said the Biden administration is working on an executive order for an outward investment review mechanism that would examine money going to certain Chinese technology and would include the controls for quantum computing and artificial intelligence.
Earlier this month, the top two manufacturers of chip-making tools in the world, ASML Holdings and Lam Research, were reportedly scrambling to comply with the most recent US trade sanctions against China by evacuating American engineers from their operations in the country.
The policy aims to address compliance issues brought on by new US regulation that limits the participation of US citizens in advanced semiconductor facilities in China.
According to a Wall Street Journal report that cited sources familiar with the matter, US engineers have also been withdrawn from supporting equipment installed with Chinese clients, including China's largest memory chip manufacturer Yangtze Memory Technologies Company.
These businesses include KLA Corp, which offers process control systems for the semiconductor industry, and Lam Research, a producer of equipment for wafer fabrication.
China's Semiconductor Industry
The most recent restrictions are expected to harm China's semiconductor industry because engineers and executives with US passports or citizenship are heavily involved in the country's expanding chip sector.
The US has come under fire from China for tightening the controls on its access to semiconductor technology. Following weeks of strikes against China's semiconductor supply, the Biden administration slapped further export restrictions against the country on Oct. 7.
China is moving closer to its aim of being a world leader in artificial intelligence by 2030, according to research published by the Center for Security in Emerging Technology (CSET), due to semiconductors made by American companies.
Based on 97 publicly available documents of the Chinese military's procurement of AI processors, most of them were developed by American firms Nvidia, Xilinx (now AMD), Intel, or Microsemi, according to the research.
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Written by Joaquin Victor Tacla
