US Issues New Wave of Restrictions to Block China Access to Chips Tech

The Biden administration unleashing another round of semiconductor export controls on China. The goal is to prevent Beijing from using American technology to advance its own military. The Commerce Department is restricting exports for 24 types of equipment used to make microchips plus three software tools. A type of microchip that's critical for AI training is also on the 140 companies are also added to the blacklist. Some of them work with one of Beijing's state-backed champions tech giant Huawei. Semiconductors are the heart of U.S.-China competition. The tiny devices make up the foundation for all other technology including advanced know-how like AI and quantum computing. Microchips also power our modern life from iPhones to cars to home appliances plus military gear and even missiles. China is the world's largest market for semiconductors. It accounted for 36 percent of U.S. semiconductor exports in 2022. Zooming in on American chip maker Intel, a quarter of its revenue last year came from China, about 15 billion dollars. Commerce Secretary Gina Raimondo said the move aims to prevent China from advancing its domestic semiconductor manufacturing system which it will use to support its military modernization. China's foreign ministry responded saying the new expert controls undermine international trade. China has ramped up efforts to become self-sufficient in the semiconductor sector in recent years but it remains years behind industry leaders from other countries.