The US Department of Commerce’s Bureau of Industry and Security (BIS) has introduced export controls designed to restrict China's capability to produce advanced-node semiconductors that can be used in the next generation of advanced weapon systems, AI and advanced computing.
The Department of Commerce has described as a proactive measure new rules to impede China's ability to procure and produce the technologies necessary for its military modernisation.
The rules include:
- new controls on 24 types of semiconductor manufacturing equipment and 3 types of software tools for developing or producing semiconductors;
- new controls on high-bandwidth memory (HBM);
- new red flag guidance to address compliance and diversion concerns;
- 140 Entity List additions and 14 modifications spanning PRC tool manufacturers, semiconductor fabs, and investment companies involved in advancing the PRC government’s military modernisation;
- and several critical regulatory changes to enhance the effectiveness of previous controls.
US Secretary of Commerce Gina Raimondo said the action, in concert with US allies and partners, is to impair China's ability to indigenise the production of advanced technologies that pose a risk to US national security.
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“Further strengthening our export controls underscores the central role of the Department of Commerce in executing the United States’ broader national security strategy," Raimondo said.
“The United States has taken significant steps to protect our technology from being used by our adversaries in ways that threaten our national security,” said National Security Advisor Jake Sullivan.
"As technology evolves, and our adversaries seek new ways to evade restrictions, we will continue to work with our allies and partners to proactively and aggressively safeguard our world-leading technologies and know-how so they aren’t used to undermine our national security."
Under Secretary of Commerce for Industry and Security Alan Estevez said the action builds on BIS’s work to impose strategic controls that have hindered the PRC’s ability to produce advanced semiconductors and AI capabilities directly impacting US national security.
"Today’s announcement represents the next step in that ongoing work,” said Estevez.
“We must ensure that we stay ahead of the PRC by protecting our advanced technology.”
Matthew S. Axelrod, Assistant Secretary for Export Enforcement said the purpose of these Entity List actions is to stop PRC companies from leveraging US technology to indigenously produce advanced semiconductors
“By adding key semiconductor fabrication facilities, equipment manufacturers, and investment companies to the Entity List, we are directly impeding the PRC’s military modernisation, WMD programs, and ability to repress human rights,” Axelrod said.