Beijing has issued a warning after the Biden administration’s parting shot in the long-running tech war between the U.S. and China.
Newsweek reached out to the U.S. Commerce Department’s Bureau of Industry and Security with an emailed request for comment.
Why It Matters
The Bureau of Industry and Security on Wednesday unveiled new measures to encourage chip manufacturers like TSMC, Intel and Samsun to step up due diligence following revelations that TSMC chips had reached blacklisted Chinese tech giant Huawei.
The measures aim to curb China’s access to chips powering AI and supercomputing, amid U.S. concerns over China’s civilian-military dual-use policy. Washington has kept up pressure pressure on Taiwan, home of TSMC, and the Netherlands, where advanced chipmaker ASML is based, to align with its restrictions, which China says amounts to weaponization of trade.
Chinese Foreign Ministry spokesman Guo Jiakun answers questions during a daily press conference in Beijing on January 7, 2025. Guo has blasted the U.S.’ “malicious attempts to block and suppress China’s semiconductor industry.”
Johannes Neudecker/Associated Press
What To Know
Asked about the forthcoming export controls on Wednesday, Chinese Foreign Ministry spokesperson Guo Jiakun blasted the U.S.’ “malicious attempts to block and suppress China’s semiconductor industry,” warning Washington’s mounting restrictions will hamper semiconductor industry advances worldwide and “benefit no one.”
Guo continued his criticism during Thursday’s regular press conference after the measures were announced.
“This seriously violates the legitimate rights and interests of companies from countries around the world, including China,” he said.
“I want to stress that no sanction or suppression will stop China’s development and progress, and no bullying or coercion will weaken China’s resolve in boosting its own strengths,” he said, vowing Beijing would take “resolute measures” to protect China’s interests.
The Biden administration’s latest trade war salvo follows the president’s proposal of new guidelines for exporting advanced AI chips, a key battleground in the war for tech supremacy. The framework includes lists “countries of concern,” though it doesn’t name China specifically.
What People Are Saying
Chris Lehane, vice president of global affairs for Open AI, the company behind ChatGPT told Fox News: “One country, the U.S., is building democratic AI. It’s free. It’s accessible. The other is going to build authoritarian, autocratic AI. And this is really like a zero-sum race.”
Under Secretary of Commerce for Industry and Security Alan Estevez said: “The Biden-Harris administration is committed to preventing the misuse of advanced U.S. technology and curbing the national security concerns raised by the PRC’s (People’s Republic of China) military-civil fusion. By enhancing due diligence requirements, we are holding foundries accountable for verifying that their chips are not being diverted to restricted entities.”
Acting Assistant Secretary for Export Enforcement Kevin Kurland said: “Preventing unauthorized parties from gaining access to our most advanced semiconductor technology is a BIS enforcement priority. We will continue to use all of the authorities at our disposal, including investigations and Entity Listings, to counter PRC circumvention of our controls and hold violators accountable.”
What’s Next
President-elect Donald Trump is likely to impose further controls not only on chips but a range of technologies of the future after he takes office on January 21, say officials who served during his first term.
“I think the Biden administration still sees China as an entity that can be negotiated with,” Nazak Nikakhtar, former Commerce Department assistant secretary for industry and analysis told The Washington Post.”[Trump] knows what he wants as the outcome, and he’s not willing to compromise.”
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