On August 1, it was reported that the Biden government planned to further tighten the restrictions on chip exports to China. It is expected to issue new regulations next month, which will expand the scope of preventing some countries from exporting semiconductor manufacturing equipment to chip manufacturers in Chinese Mainland. This new rule is currently in the draft stage.

The new rules are an extension of the Foreign Direct Product Rules in the US export control regulations, which will prohibit about six advanced chip manufacturers in Chinese Mainland from receiving export products from many countries.
 

According to the new rules, if a product uses even a small amount of American technology, even if it is manufactured outside the United States, the US government has the right to prevent its sale to specific countries or regions.   

However, companies from multiple US allies such as Japan, the Netherlands, and South Korea will be exempted. Therefore, major chip equipment manufacturers such as ASML and Tokyo Electronics will not be affected. In addition to Japan, the Netherlands, and South Korea, the draft also exempts more than 30 other countries belonging to the A: 5 group.

According to sources, the United States also plans to add approximately 120 Chinese entities to its restricted trade list, including not only six chip manufacturing factories but also tool manufacturers, EDA software providers, and related companies.
    However, the new regulations are currently only a draft, and the final content may change, but the goal is to announce them in some form next month.
    At the regular press conference on July 31st, a Reuters reporter asked, according to sources, the Biden administration plans to announce a new regulation next month, in which the United States will further prevent some countries from exporting semiconductors and manufacturing equipment to Chinese chip manufacturers, but Japan, the Netherlands, and South Korea will be exempted. What is China's comment on this?
  

Foreign Ministry spokesperson Lin Jian stated that China has repeatedly expressed its firm stance on the malicious blockade and suppression of China's semiconductor industry by the United States. The US politicizes, securitizes, and instrumentalizes economic, trade, and technological issues, continuously increases its control over chip exports to China, coerces other countries to suppress China's semiconductor industry, seriously undermines international trade rules, damages the stability of the global industrial chain, and is detrimental to any party. China has always been firmly opposed to this.
    Lin Jian emphasized that containment and suppression cannot stop China's development, but will only enhance China's determination and ability for technological self-reliance and self-improvement. China will closely monitor relevant developments, resolutely safeguard its legitimate rights and interests, and hope that relevant countries will resolutely resist coercion, jointly maintain a fair and open international economic and trade order, and truly safeguard their own long-term interests.

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