US Export Controls Disable China's Chips Manufacturing
Post last updated: October 28, 2023
On October 7, 2022, the Bureau of Industry and Security (BIS) officially implemented a set of new rules to its export controls. The aim of the new US export controls is to strip China of access to American-made equipment and software needed for manufacturing high-end chips.
These items and capabilities are used by the PRC to produce advanced military systems including weapons of mass destruction; improve the speed and accuracy of its military decision-making, planning, and logistics, as well as of its autonomous military systems; and commit human rights abuses.
Bureau of Industry and Security (BIS)
As a response to the newly released rules, some Western companies discontinued trade with Chinese chip manufacturers.
It's a common practice for "Western companies to broadly suspend exports in the immediate wake of new U.S. restrictions, and then resume some later once they decipher the rules, lawyers say. But national-security experts say the new restrictions, which aim to stop China from producing advanced chips, are among the toughest the United States has enacted."
The Washington Post
A novel step imposed by the rules also restricts the ability of U.S. persons to support the development, or production, of ICs at certain PRC-located semiconductor fabrication 'facilities without a license;
Bureau of Industry and Security (BIS)
The USA imposing new export restrictions had an immediate impact on all American citizens or the Green card holders working in China in the semiconductor industry.
"Every American executive and engineer working in China’s semiconductor manufacturing industry resigned yesterday, paralyzing Chinese manufacturing overnight." reported analyst on China and technology Jordan Schneider @jordanschnyc.
