The Biden administration is trying to overcome resistance from allied nations and the technology industry and impose stricter regulations on semiconductor exports to China.

The new rules aim to limit China’s access to advanced chip manufacturing technology, potentially strengthening Beijing’s military capabilities.

The proposed rules would restrict the export of semiconductor manufacturing machinery and software to China if it involves American technology and certain types of semiconductors, the New York Times reported. The move is intended to close loopholes that Chinese chipmakers have exploited to acquire technology despite existing international restrictions.

The US is pressuring allies such as Japan and the Netherlands to tighten their own technology export controls to China. These countries, which are home to major chipmakers such as ASML and Tokyo Electron, have faced diplomatic pressure from the US, including during a recent Japanese state visit to Washington.

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However, there is growing concern among industry representatives that these restrictions could put U.S. companies at a disadvantage, the New York Times added. The new rules are expected to exempt more than 30 allied countries, including the Netherlands, South Korea and Japan, raising fears that American companies could face an unlevel playing field.

While U.S. officials continue to negotiate with their allies to tighten these restrictions, some analysts are skeptical that these goals will be achieved. In response, China has criticized the U.S. for allegedly abusing export controls and hopes that other countries will resist American economic pressure.

The details of the policy are still uncertain and could change, but the upcoming rules are clearly aimed at strengthening existing measures to curb the development of cutting-edge AI chips in China.

Disclaimer: This content was created in part using AI tools and reviewed and published by Benzinga editors.

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