The U.S. is preparing several new restrictions on exports of semiconductor manufacturing equipment to China to further impede Beijing’s semiconductor capabilities, according to multiple reports.
Chip export news
U.S. export controls on artificial intelligence may not be the right strategy to hinder Chinese progress in certain AI subfields, including machine learning, Georgetown University’s Center for Security and Emerging Technology said in a report this week. While the controls may seem “attractive in the abstract,” the report said most decoupling regimes are “imperfect and frequently act as a hindrance, rather than an absolute bar, to a rival’s technological progress.”
Commerce Secretary Gina Raimondo, during a July 24 interview on Face the Nation, said that although some critics of the CHIPS bill say it helps semiconductor companies expand chip production in China due to grandfather provisions, she says the guardrails are adequate.
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The U.S. should shift away from only using export controls as a technology competition strategy against China and instead turn to domestic investment, Ling Chen, a Wilson Center China fellow, said in a July report funded by the think tank. “Weaponizing” supply chains will only “galvanize” China, the report said, causing it to “accelerate” its technological development. “The effect of the tech war may be counterproductive for the United States,” the report said.
The Bureau of Industry and Security is conducting a review of the types of semiconductors and chipmaking equipment that can be exported to China to determine whether it needs to tighten those restrictions, BIS Undersecretary Alan Estevez said, speaking during a Senate Banking Committee hearing last week. He said the agency is considering tightening the “cut-off point” of semiconductors that are subject to strict export licensing requirements.
The Bureau of Industry and Security is using recently received funding to expand its U.S. field offices and send more officers overseas, said Matthew Axelrod, the agency’s top enforcement official. Axelrod said BIS soon will launch a field office in Phoenix and has sent export control officers to the U.S. Embassy in Helsinki and the American Institute of Taiwan in Taipei. BIS also recently sent its first intelligence analyst abroad to work with the Canadian Border Services Agency.
Although the U.S. and allies are discussing creating a new multilateral export control framework, it’s too soon to tell whether those talks will result in a formal regime, said Alan Estevez, undersecretary of the Bureau of Industry and Security. He said the group of countries has “momentum” toward a new framework, but they haven’t yet agreed to establish a formal organization to replace some of the existing multilateral regimes, such as the Wassenaar Arrangement.
Export controls may not stop all illegal shipments, but that doesn’t mean the U.S. and others should not work to improve cooperation and coordination, experts agreed during a June 27 Brookings Institution panel.
As senators who support subsidies to build semiconductor chips in the U.S. continue to say the trade title differences are holding up the bill, and that it should drop out, House negotiators say it's not time to give up yet.