US to announce new limits on Chip exports to China

The Biden administration plans to announce new restrictions on China’s access to U.S. semiconductor technology, according to people with knowledge of the situation, an escalation of Washington’s efforts to stifle Beijing’s industrial ambitions and a risk to growth for the $550 billion sector.

The Commerce Department will roll out a package of rules this week to govern which semiconductor technologies can be exported to China, including codifying earlier guidance given to specific companies, said the people, who asked not to be identified as the information isn’t public. 

The measures, which could be announced as soon as this week, would be some of the most significant steps taken by the Biden administration to cut off China’s access to advanced semiconductor technology.

They would build on a Trump-era rule that struck a blow to the Chinese telecom giant Huawei by prohibiting companies around the world from sending it products made with the use of American technology, machinery or software.

A number of Chinese firms, government research labs and other entities are expected to face restrictions similar to Huawei, according to two people with knowledge of the plans.

In effect, any firm that uses American-made technologies would be blocked from selling to the Chinese entities that are targeted by the administration. It’s not yet clear which Chinese firms and labs would be affected.