FX.co ★ US to patch loopholes enabling chip exports to China

According to Reuters, the US will take steps to ban shipments of advanced chips and chipmaking equipment to China, imposing sweeping restrictions through third countries. According to representatives of Joe Biden's administration, the White House is ready to tighten the current restrictions in the field of artificial intelligence (AI) and tools used to manufacture semiconductors. Thus, China will lose the loophole thanks to which it could buy US chips. Currently, overseas subsidiaries of Chinese companies have unrestricted access to such products. However, the US authorities fear the smuggling of American chips. Therefore, the White House intends to cover all channels of access to its technologies. These restrictions will apply only to Chinese users, the government emphasizes. In early October, Reuters reported on the plans of the US authorities to make a new step in the "chip war" against China. Reportedly, the US planned to tighten restrictions on the export of chips and technologies for semiconductor production in China. It was assumed that the new ban would cut off China's access to a large number of technologies for the production of chips. In addition, it was planned to block the channels of supply of these products to China via third countries. In September 2023, the US Department of Commerce prohibited China from using US subsidies to finance semiconductor production. The recipients of the financial aid were forbidden to direct the funds to chip production in foreign countries, including China and Russia. In addition, joint research and licensing of technologies developed with the assistance of organizations not trusted by the US was prohibited.