US Restrictions on China Announced

The U.S. government has announced new restrictions aimed at limiting China’s ability to manufacture advanced microchips.

These measures are designed to prevent China from using these components in military equipment and artificial intelligence applications.

A total of 140 Chinese companies have been added to the «entity list,» which effectively blocks their exports.

Being on this list means companies must apply for export licenses that are nearly impossible to obtain.

Biden Tightens Restrictions to Curb China’s Technological and Military Advancements

This marks the third set of technological restrictions issued by Joe Biden’s administration in three years.

The goal is to limit China’s access to advanced chips, which are critical for military developments and artificial intelligence.

Gina Raimondo, US Secretary of Commerce, described the measures as «the strictest controls ever implemented.»

The US government argues that China can use these chips for cyberattacks, weapon design, and surveillance systems.

Among the affected companies are Shenzhen Pensun Technology Co. and manufacturers such as Piotech and ACM Research.

The new regulations also add restrictions to the export of 24 essential tools China would need for chip manufacturing.

A notable addition is the application of the «Foreign Direct Product Rule» (FDPR), which impacts non-U.S. companies.

Japan and the Netherlands are exempt from these restrictions, as reported by the Financial Times.

Both countries, along with the US, dominate the production of advanced chip-making equipment.

These measures come ahead of the administration change when Joe Biden will leave the White House on January 20, 2025.

Donald Trump is expected to maintain a hardline stance on technological policies toward China.