US is urging chipmaking allies like Japan, Netherlands to tighten restrictions on China

The United States is urging Japan and the Netherlands to strengthen restrictions on exports of chipmaking equipment to China, citing worries over advances made by blacklisted Chinese tech companies such as Huawei and SMIC. Washington implemented export controls in October 2022 to hinder Chinese efforts in acquiring high-performance semiconductors for potential military applications.

The Netherlands and Japan, renowned for their expertise in producing advanced chipmaking equipment, joined the US by enforcing export restrictions on sophisticated machines and components.

Despite these measures, Chinese firms like Huawei and Semiconductor Manufacturing International Corporation (SMIC), both blacklisted by the US, announced in August that they had developed an advanced chip used in Huawei’s Mate 60 series phone.

The Biden administration is pushing Tokyo and The Hague to further tighten controls to address gaps in the existing regulations.

Possible measures include restricting exports of less sophisticated machines and introducing limitations on servicing and repairs for machines already bought by Chinese clients before the controls were implemented.

Efforts to coordinate export controls are underway, with The Hague pressing Brussels to avoid fragmentation of controls within the EU. Meanwhile, Washington is also seeking similar controls from South Korea, though the country’s companies do not manufacture equipment as advanced as those from the Netherlands and Japan.

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