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Calls for Tighter Export Controls on Advanced Semiconductors to China Grow among U.S. Legislators

Calls for Tighter Export Controls on Advanced Semiconductors to China Grow among U.S. Legislators

Republican Lawmakers Urge Biden Administration to Strengthen Export Controls on Advanced Semiconductors to China

Two senior Republican members of the U.S. House of Representatives, Michael McCaul and Mike Gallagher, have called on the Biden administration to tighten export controls on advanced semiconductors to China. The lawmakers expressed concerns over the lax enforcement of existing rules by the Department of Commerce’s Bureau of Industry and Security (BIS). They specifically pointed out the advancements made by China’s Semiconductor Manufacturing International Corporation (SMIC) and Huawei Technologies.

Concerns Over BIS’s Failure to Enforce Export Rules

In a letter sent to National Security Advisor Jake Sullivan on October 6, 2023, Representatives McCaul and Gallagher outlined their concerns about BIS’s failure to enforce rules set on October 7, 2022. These rules were designed to limit the export of advanced semiconductors to China, particularly those with potential military applications and human rights concerns.

Advancements by SMIC and Huawei

The lawmakers highlighted recent advancements by SMIC that they claim have surpassed any current U.S.-based foundry. They also mentioned Huawei Technologies’ Mate 60 Pro smartphone, which incorporates advanced chips manufactured by SMIC despite existing U.S. sanctions. According to the letter, BIS’s lack of resolve has allowed SMIC to become more advanced than any U.S.-based foundry.

Immediate Actions Proposed

The letter outlined four immediate actions that BIS must take:

  1. Update and issue final rules to limit workarounds for exporting advanced semiconductors and tools to China.
  2. Take immediate action against SMIC and Huawei, including imposing full blocking sanctions.
  3. Close the Cloud Computing Loophole to prevent Chinese companies from circumventing U.S. export controls.
  4. Enforce the 60-Day Rule for moving entities from the Unverified List to the Entity List.

Tension Between U.S. and China in Technology Sector

The lawmakers’ call for stricter enforcement of export controls highlights the growing tension between the U.S. and China in the technology sector. It also raises questions about the effectiveness of the current approach to export controls by the U.S. government, particularly considering China’s rapid advancements in semiconductor technology.

Seeking Answers and Urgent Action

The letter also seeks answers to specific questions, including whether there was unanimous agreement within the administration to implement the October 7 rules and what intelligence led to a change in Secretary Gina M. Raimondo’s opinion about SMIC and Huawei.

Hot Take: Ensuring Technological Superiority and National Security

The letter from Representatives McCaul and Gallagher serves as a stark reminder of the challenges the U.S. faces in maintaining technological superiority and national security. Immediate action is needed from BIS to tighten export controls, particularly concerning advanced semiconductors and their potential use in China’s military modernization efforts and human rights abuses.

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Calls for Tighter Export Controls on Advanced Semiconductors to China Grow among U.S. Legislators