The U.S. Department of Commerce's Bureau of Industry and Security (BIS) has introduced new rules to limit China's ability to produce advanced semiconductors, which are critical for military applications. This move is part of a broader strategy to hinder the People's Republic of China's (PRC) military modernization efforts by restricting access to technologies necessary for developing advanced weapon systems and artificial intelligence.
The new regulations impose controls on 24 types of semiconductor manufacturing equipment and three types of software tools used in semiconductor production. Additionally, high-bandwidth memory (HBM) will face new restrictions, along with the addition of 140 entities to the Entity List. These entities include semiconductor fabs and investment companies that support Beijing's military goals.
U.S. Secretary of Commerce Gina Raimondo said, "This action is the culmination of the Biden-Harris Administration’s targeted approach...to impair the PRC’s ability to indigenize the production of advanced technologies that pose a risk to our national security." National Security Advisor Jake Sullivan emphasized the need for proactive measures: "As technology evolves...we will continue to work with our allies and partners to proactively and aggressively safeguard our world-leading technologies."
Under Secretary Alan Estevez noted that these actions build on previous efforts by BIS, aiming to stay ahead in controlling advanced technology proliferation. Assistant Secretary Thea D. Rozman Kendler highlighted concerns over China's Military-Civil Fusion strategy, which could use semiconductors in military applications threatening U.S. security.
Assistant Secretary Matthew S. Axelrod explained that adding key facilities and companies to the Entity List aims at stopping PRC firms from leveraging U.S. technology for indigenous semiconductor production.
These policy changes reflect a strategic effort by BIS and its allies to limit China's development capabilities in areas posing substantial risks to U.S. national security.
