US Pressures Allies to Restrict Chip Exports to China

The US is ramping up pressure on China, asking its allies to restrict semiconductor exports to the country....
US Pressures Allies to Restrict Chip Exports to China
Written by Staff
  • The US is ramping up pressure on China, asking its allies to restrict semiconductor exports to the country.

    The US has been trying to limit China’s access to advanced semiconductors, even using its recently passed CHIPS Act to force companies that accept funding not to provide China with their latest tech. According to Nikkei Asia, the US is trying to convince its allies to follow suit.

    “We were talking to our allies. No one was surprised when we did this, and they all know that we’re expecting them to cover likewise,” said Alan Estevez, undersecretary of commerce for industry and security.

    Japan is already considering similar measures, and is looking to see what action other countries may take. Should Japan move forward with restrictions, it will be a significant step given that it has an even larger share of the semiconductor market than the US. According to Nikkei, the US holds 12% and Japan holds 15%. Taiwan and South Korea each have roughly 20% of the market.

    Should Japan follow the US’ lead, experts believe it could result in much closer ties and trade between the two countries.

    “I expect of addressing a common concern about China, then that creates an opportunity for the Japan and the U.S. governments to reduce barriers on trade between Japan and the United States,” said Kevin Wolf, former assistant secretary of commerce for export administration under the Obama administration.

    “This will actually result in even better cooperation between Japan and the United States and fewer restrictions on joint development and production of advanced node items,” Wolf added.

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