Biden Administration Launches Major Offensive with Ten New Export Controls, Chinese Overseas Investments Face Obstacles!

As China continues to grow in the global chip industry, the Biden administration has begun to impose new export control policies on several key technologies and products. These policies mainly target quantum computing, semiconductor products and other advanced technologies. The Commerce Department on Friday unveiled a set of new regulations covering quantum computers and their components, advanced chip-making equipment, components and software related to metals and metal alloys, and high-bandwidth chips, which are central components in artificial intelligence applications.

The State Department noted that the measures were taken for "national security and foreign policy reasons" and stressed that they were the result of extensive discussions with international partners. German car brands, once the envy of the world, are now a heavy burden on the struggling German economy. Meanwhile, the world experienced its hottest summer on record for the second year in a row.

China's wealthy are increasingly looking overseas for business investment opportunities, and these new export control policies not only cover global exports, but also include exemptions for countries that already have similar controls in place, such as Japan and the Netherlands in the past. The US Department of Commerce's Bureau of Industry and Security (BIS) expects more countries to take similar measures in the future.

"Today's action ensures that our national export controls keep pace with rapidly evolving technologies and are more effective as we work with international partners," BIS Deputy Director General Alan Estevez said in a statement. "Adjusting our control of quantum and other advanced technologies makes it more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security," he added.

Officials will have a 60-day public comment period before issuing a final ruling. Beyond semiconductors, both China and the United States want to be leaders in quantum computing, which they see as a potentially transformative technology. While China is not explicitly mentioned in the document, the controls are in line with a series of moves by the Biden administration to limit Beijing's advances in artificial intelligence, computing and other fields.

The BIS said it would also continue to strengthen ties with Allies to improve the effectiveness of export controls designed to degrade Russia's military capabilities, as well as those of "enablers" such as Belarus and Iran. However, US export control efforts have also run into some obstacles.

As Washington ramps up restrictions and technology sanctions, Beijing has stepped up its drive for self-sufficiency, investing billions of dollars in key technologies to bolster its chip manufacturing industry. According to Nikkei Asian News, a recent analysis of Chinese semiconductor technology by Tokyo-based semiconductor research firm TechanaLye found that Chinese-made processor chips are approaching a level just three years behind industry leader Taiwan Semiconductor Manufacturing Co.

As the United States continues to tighten controls, the global airline industry is showing a degree of reluctance. Dutch chip equipment giant ASML has reportedly been restricted from supplying industry-leading advanced semiconductor equipment to China, and the company's CEO said on Wednesday that he expects more resistance as U.S.-led restrictions become more "economically motivated" over time.

The Dutch government said it would take ASML's economic interests into account when deciding whether to further tighten semiconductor export rules. Meanwhile, South Korean Trade Minister Chung In-kyo reportedly said this week that the United States should offer more incentives if it wants South Korea to comply with additional export restrictions on Chinese semiconductors.

Beijing has long argued that chip restrictions by the United States and its Allies are anti-competitive and hurt the global semiconductor supply chain.