US restricts Chinese access to semiconductors amid tech rivalry

The US claims that its chips can be used for advanced weapons or that China can use them for human rights abuses. The new restrictions are expected to slow down China's technological advance.

The US is seeking to slow down China's technological rise© Stefani Reynolds/AP/picture alliance

The US has decided to curtail China's ability to buy certain semiconductor chips created with US equipment in an effort to set back the country's technological and military progress.

The US Department of Commerce was introducing new controls that would restrict the export of chips used in supercomputing. According to the Friday statement, they are also raising the criteria for the sale of semiconductor equipment.

The decision is reminiscent of US measures to set back competitors during the Cold War. It could leave a significant dent on China's technological and military advances.

Why did the US take this decision?

The measures came in a bid to protect US national security and foreign policy interests, Commerce Department official Alan Estevez said.

The US argues that the chips can be used to create advanced military systems which include weapons of mass destruction, or that China could utilize them in human rights abuses.

The move comes amid rising tensions between both countries. Semiconductors' manufacture and export have always been at the heart of their technological race. This summer, the Biden administration passed a $280 billion (€287.5 billion) measure to boost the US semiconductor industry.

China has also poured resources into the same sector. However, it's not yet capable of producing its own high-end chips to furnish advanced computing devices.

US President Joe Biden said China had lobbied against the multibillion-dollar Chips and Science act last summer© Bonnie Cash/UPI Photo/IMAGO

How effective is the latest measure?

The effectiveness of the latest US restrictions on China's technological purchases is likely to depend on the response rate of US allies.

Senior US government officials acknowledged in a briefing on Thursday that they had yet to secure solid promises from allies that they would implement similar measures.

"We recognize that the unilateral controls we're putting into place will lose effectiveness over time if other countries don't join us," Reuters news agency quoted one official as saying. "And we risk harming US technology leadership if foreign competitors are not subject to similar controls."

Chinese giant phone manufacturer Huawei has come under US fire in recent years, with the US preventing home network suppliers from giving it access to next-generation networks. It also lobbied for similar restrictions in other parts of the world, massively curtailing the brand's world-wide popularity.

The company was accused of colluding with the Chinese government amid fears of the government using the phones' technology to spy on their owners.