China Slams US for Tightening Chip Export Rules

By Trisha Andrada

Apr 01 2024, 04:09 AM EDT

The Chinese government has slammed the US for tightening regulations about semiconductor exports, claiming they have created trade barriers and heightened uncertainty in the chip industry.

Last week, the Biden administration amended the regulations to make it more difficult for China to acquire US artificial intelligence (AI) processors and equipment for chipmaking. It is part of a more extensive attempt to limit Beijing's chipmaking business because of national security concerns.

Recent US Crackdown on Chip Exports Draws Criticism From China

In comments made on Sunday night, the Chinese Ministry of Commerce (MOFCOM) pointed out that the US had only been imposing the regulation on semiconductor exports for around six months when the most recent change occurred, the Global Times reported.

According to Reuters, the new regulations, which stretch over 166 pages, will be enforced on April 4 and will extend the limitations to include laptops equipped with AI processors.

In a statement, a Commerce Ministry spokesperson said: "The U.S. has broadened the concept of national security, arbitrarily revised the rules, and tightened control measures. That has not only set up more obstacles and imposed a heavier compliance burden on Chinese and American companies who want to work together economically and in trade normally but has also created huge uncertainty for the global semiconductor industry."

US Move Affects Mutually Beneficial Cooperation Between China and Foreign Enterprises

In response to a reporter's question, the spokesperson said the US move violates international businesses' legitimate rights and interests and severely affects the mutually beneficial partnership between Chinese and foreign enterprises, adding that China "firmly opposes this."

Companies, including Nvidia and AMD, have been impacted by the feud since last October when the US imposed rules barring semiconductor exports.

According to the spokesperson, China is willing and ready to work with all parties to boost mutually beneficial cooperation and "promote the security and stability of the global semiconductor industry and supply chain."