The Biden administration announced new restrictions Monday targeting the export of advanced semiconductor chips and manufacturing equipment to China. The measures, introduced by the Commerce Department’s Bureau of Industry and Security, aim to limit Beijing’s ability to develop advanced technologies, including artificial intelligence and military applications.
The restrictions add 140 Chinese manufacturers and investment companies to the Entity List, a U.S. registry of foreign entities considered national security risks. This move further escalates efforts to curb China’s access to cutting-edge technology. “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. He emphasized the administration’s commitment to evolving with technological advancements to counter efforts to bypass existing restrictions.
The new controls include a ban on the export of high-bandwidth memory essential for artificial intelligence applications. Advanced semiconductors, vital for AI systems, supercomputing, and dual-use technologies, are at the center of the policy. “Semiconductors are a strategic asset,” Sullivan explained, adding that the U.S. would work closely with allies to “proactively and aggressively safeguard our world-leading technologies” from misuse.
Semiconductors, small yet powerful devices, are critical to modern technological advancements. The U.S. Government Accountability Office notes they are integral to applications ranging from medical diagnostics to military operations, including modeling nuclear explosions.
The pandemic highlighted vulnerabilities in the U.S. semiconductor supply chain, prompting Congress to pass the CHIPS Act in 2022 to boost domestic manufacturing. The administration’s actions build on this momentum, aiming to maintain a competitive edge while addressing national security concerns. Assistant Secretary of Commerce for Export Administration Thea D. Rozman Kendler warned of the risks posed by China’s Military-Civil Fusion strategy. “Advanced node semiconductors could be used in military applications that threaten the security of the United States and our allies,” she said.
China has strongly opposed the new restrictions, accusing the U.S. of undermining global economic stability. Chinese Foreign Ministry spokesperson Lin Jian stated, “This type of behavior seriously violates the laws of market economy and the principle of fair competition, disrupts international economic and trade order, destabilizes global industrial and supply chains, and will eventually harm the interests of all countries.” Jian warned that Beijing would take “firm, resolute measures” to protect its companies’ interests in response to the restrictions.
The latest controls reflect ongoing tensions between the U.S. and China over technology leadership and national security. As both nations vie for dominance in AI and other cutting-edge fields, these measures are expected to have far-reaching effects on global supply chains and international trade dynamics. While the Biden administration maintains that safeguarding advanced technology is essential for national security, China’s objections signal a brewing trade conflict that could reshape technological cooperation and competition worldwide.
