Last year, the US released an export curb to China regarding certain technologies; now, an update by Reuters states that any loopholes regarding the previously announced export curb will be analyzed and remedied after a few finalizations and review.
Last Monday, the Biden Administration warned China of the imminent implementation of the export restrictions as early as October this year. The technologies in question are semiconductor equipment and advanced AI chips.
(Photo : Justin Sullivan/Getty Images)
Semiconductors are seen on a circuit board that powers a Samsung tablet at the Samsung MOBILE-ization media and analyst event on March 23, 2011 in San Jose, California.
US' latest update on the export restrictions is reportedly only about semiconductors. In contrast, updated policies on AI chip exports remain absent after a recent regulation posting from the Office of Management and Budget's website. Finalized AI chips and semiconductors policies are expected to be released simultaneously.
China's Response
China's previous responses regarding US' export curbs and clear "measures to restrict Chinese companies" access to the most advanced semiconductors" show offense by describing it as an "abuse of trade measures" and has continued to escalate the tensions between the two countries.
China recently implemented an export curb for gallium and germanium, materials critical in creating integrated circuits, LEDs, fiber optics, and others within its own country. Drones are also a part of the export restrictions used in the Ukraine-Russia conflict.
Read Also: [TECH WAR] China Bans Exports of 2 Key Metals for Manufacturing Chips: Gallium and Germanium
Experts suggest that China intends to show the US that they hold "all of the power in this dangerous game" and that any further action from the US will lead to "consequences."
The US, according to The Economist, "account for a third of global semiconductor sales." At the same time, China, as reported by France 24, holds a majority of the world production for gallium and germanium.
Escalation from both sides continues to develop with the US' recent efforts to impede China's technological and military advances. The current export curb was previously described by Reuters as the "biggest shift" in US and China technology shipments since the 1990s.
Reuters explained it could potentially hobble China's chip manufacturing industry and "will set the Chinese back years," as commented by an expert.
According to NBC, Biden described the escalating trade war as a way to "de-risk" the administration's relationship with China by opening specific trade flows within certain areas while closing it on areas like semiconductors and chips to prioritize national security.
NBC notes that past export and other technology restrictions have also had global implications. Taiwan, the largest manufacturer of semiconductors, among other countries, and with different semiconductor manufacturers, are also impacted by barring it from selling the component to China.
Export Restrictions' Aftereffects
Despite the US' recent efforts to stop China from gaining the upper hand in semiconductors and chipmaking, Investors Business Daily has noted that chip manufacturing remains vigilant within Beijing. Huawei, a Chinese tech giant. Recently unveiled a highly advanced smartphone chipset back in August, signaling the lapses of US export restrictions.
The US and China's efforts in limiting one from the other from different components constantly remain. China's export restriction is only said to be the beginning, according to Aljazeera, while the US continues its "counterproductive" export restrictions.
Related Article: China Appeals to Japan: Avoid Disrupting Semiconductor Industry Amid Export Limits
