U.S. Allies Restrict Raimondo’s Chip Exports to the CCP

[November 04, 2022](Comprehensive report by Epoch Times reporter Xia Yu) On Thursday (November 3), US Secretary of Commerce Gina Raimondo criticized the Biden administration for banning US companies and New rules for citizens to help China manufacture advanced semiconductor chips are explained. “We must protect the American people from China,” she stressed.

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Raimondo also said that the United States and its allies are reaching an agreement on new regulations aimed at restricting China’s access to certain chip technology, which will take about nine months.

Raimondo: New regulations aim to stop China’s military-civil fusion policy

“China is getting more aggressive in what it calls its military-civil fusion strategy, which is essentially talking about buying our sophisticated chips,” Raimondo said in an interview with CNBC’s Jim Cramer on Thursday. , the chips were allegedly for commercial purposes.”

China, however, is using the chips in military equipment that U.S. officials fear could be used against the United States, she said. “That’s the most strategic, boldest motive, and we’re not going to support that.”

On October 7, the Biden administration imposed strict restrictions on “Americans” helping the CCP’s chip industry, including imposing strict restrictions on the export of chip technology and products.

U.S. chipmakers must obtain a license from the Commerce Department to export certain chips that can be used in modern weapons systems. The Department of Commerce also issued licensing restrictions that prohibit “Americans” from working for the Chinese chip manufacturing industry, leaving some Chinese-Americans with choices.

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Raimondo said the new rules were “necessary” despite the ban causing some lost revenue for some U.S. companies. She added that the rules are not intended to punish U.S. businesses.

“It’s targeted. We’ve been working on it for a year. It’s powerful, but it’s also aimed at getting national security done, not punishing American companies,” Raimondo said.

U.S. working on deal to limit non-U.S. companies’ exports of chip equipment to China

The U.S. government has also called on U.S. allies to issue similar restrictions. “I think you’re going to see other countries follow our lead,” Raimondo told Cramer.

Bloomberg reported on Nov. 3 that the U.S. is working on an agreement that would subject companies in the Netherlands and Japan — home to some of the largest manufacturers of chip-making equipment — to U.S. restrictions on sales of chip technology and equipment to China.

According to people with direct knowledge of the meeting, Raimondo told representatives of U.S. companies that an agreement aimed at leveling the playing field could take six to nine months.

Raimondo made the comments Wednesday when he met with representatives of equipment makers including Lam Research Corp. and KLA Corp. , said the people, who asked not to be identified discussing the nonpublic information. .

A Commerce Department spokesman declined to comment to Bloomberg. Representatives for Lam and Kelei did not immediately respond to requests for comment.

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The global chip production equipment market is dominated by Lam Forest and Applied Materials of the United States, ASML Holding NV of the Netherlands and Tokyo Electron Ltd. of Japan.

Lam, Applied Materials and Kelei have warned investors that the new export controls will cut into company revenues. Because foreign counterparts face fewer restrictions than U.S. companies.

Senior U.S. officials will go to the Netherlands to prevent ASML from supplying to China

Bloomberg quoted people familiar with the matter as saying Tarun Chhabra, a top official on the National Security Council, and Alan Estevez, the Commerce Department undersecretary for the Bureau of Industry and Security, will travel to the U.S. The Netherlands participated in the discussion, hoping to prevent part of the Dutch chip equipment company ASML from supplying to China.

Estevez said last week that he expected to reach a deal with allies in the short term. He said he wants U.S. companies to follow rules that allow them to be treated fairly in global competition. He added that national security adviser Jake Sullivan and other officials, including Raimondo, are discussing the issue with allies.

While non-U.S. companies have greater latitude in doing business with China than their U.S. counterparts, they are all subject to strict U.S. regulatory restrictions that limit their sales to Chinese customers.

ASML was unable to get Dutch government approval to sell its state-of-the-art EUV machines to China, but so far it can continue to sell its other products to Chinese customers, and it has been less affected by new U.S. export controls than its U.S. counterparts.

Bloomberg reported earlier this year that the U.S. has also been pushing ASML to stop selling immersion lithography machines to China, which is its second most advanced product after EUV.

Responsible editor: Li Huanyu#