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China firmly opposes the United States' latest control measures on semiconductor export, a spokesperson with the China’s Ministry of Commerce (MOFCOM) responded a question about the U.S. government’s new annoucement of export control, according to a statement of the ministry. The spokesperson slamed the move as a typical economic coercion and non-market practice.
The United States is saying one thing and doing another, constantly overstretching the concept of "national security", abusing export control measures and engaging in unilateral bullying behaviors, the spokesperson said in the statement.
The spokesperson stressed danger of Washington’s recent move. Noting the semiconductor industry is highly globalized, the spokesperson stated the U.S. abuse of regulatory measures severely hinders normal economic and trade exchanges among countries, undermines market rules and the international economic and trade order, and poses a serious threat to the stability of the global industrial and supply chains. The person added the global semiconductor industry, including U.S. companies, has been severely affected.
The spokesperson warned China will take necessary measures to resolutely safeguard its legitimate rights and interests.
Earlier Monday, the U.S Department of Commerce’s Bureau of Industry and Security (BIS) unveiled a package of rules designed to further impair China’s capability to produce advanced-node semiconductors that can be used in the next generation of advanced weapon systems and in artificial intelligence (AI) and advanced computing.
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 Chinese tool manufacturers, semiconductor fabs, and investment companies involved in advancing the Chinese government’s military modernization; and several critical regulatory changes to enhance the effectiveness of the previous controls, according to a press of the BIS.
Under the new rules, nearly two dozen semiconductor companies, two investment companies and over 100 chipmaking tool makers under new restrictions from the entity list, which bars U.S. suppliers from shipping to them without first receiving a special license. Three partners of Huawei Technologies Co., Ltd.--Swaysure Technology Co, Si'En Qingdao, and Shenzhen Pensun Technology Co. now face the new restrictions.
Moreover, the U.S. will expand its authority to control exports of chipmaking equiment produced in countries and regions outside U.S. to certain chip plants in China. Equipment made in Israel, Malaysia, Singapore, South Korea and Taiwan is subject to the new rules while Japan and the Netherlands will be exempt.
Introduciton of the new news is a proactive measure enhancing the Department of Commerce’s work to impede the PRC’s ability to procure and produce the technologies necessary for its military modernization, the BIS said. The rules aim to impair China's "ability to indigenize the production of advanced technologies that pose a risk to our national security,”said U.S. Secretary of Commerce Gina Raimondo.
The Dutch government said it will study the new restrictions, adding that "every country has its own considerations" on national security and export controls. ASML Holding NV did not see a material impact on its business, and if the Dutch government makes a "similar security assessment," it could affect exports of some of its chip making tools, said the world’s leading lithography machine manufacturer based in Netherlands on its website.
