Commerce Department's New Export Controls

In a move to safeguard national security and human rights, the U.S. Commerce Department has issued updated and extended export controls aimed at preventing China from obtaining advanced computer chips and the associated manufacturing equipment. These measures come in response to concerns that such chips might be used for military purposes, including the development of hypersonic missiles and artificial intelligence applications.

Commerce Secretary Gina Raimondo emphasized that the majority of semiconductor exports would remain unaffected. However, when national security or human rights risks are identified, the Department will act decisively in coordination with its allies.

The revisions were developed through consultation with industry experts and technological assessments. A significant addition is the introduction of a “gray zone” for monitoring chips that could still be utilized for military objectives, even if they don’t meet the criteria for trade restrictions.

Additionally, chip exports will face restrictions to companies headquartered in Macao or any location under a U.S. arms embargo, thus closing potential loopholes that could allow countries of concern to supply chips to China.

The updated policy also includes new requirements to make it more challenging for China to manufacture advanced chips abroad, as well as an expansion of the list of manufacturing equipment subject to export controls.

Last year’s export controls had sparked frustration within the Chinese government, which viewed the design and manufacturing of high-level semiconductors as crucial for its economic and geopolitical ambitions. However, Raimondo emphasized that the limitations on these chips are not intended to impede China’s economic growth.

In a recent meeting, Raimondo and her Chinese counterparts discussed exchanging information about the export controls. Nevertheless, the parameters of the revised controls were not disclosed to China by the U.S. government. Chinese Premier Li Qiang has called for “concrete actions” from Washington to improve relations, referencing Chinese pressure for changes in U.S. technology policy, especially regarding technology and Taiwan.

Chinese government officials are expected to attend the Asia-Pacific Economic Cooperation Summit in San Francisco in November. President Joe Biden has indicated the possibility of a meeting with Chinese President Xi Jinping on the summit’s sidelines, though such a meeting is yet to be confirmed. The two leaders previously met shortly after the initial export controls were introduced following the Group of 20 summit in Bali, Indonesia.

Re-reported from the article originally published in The Asahi Shimbun