New chip-related export controls introduced by the U.S. as China's industry progresses.

• The Biden administration is imposing new export restrictions on critical technologies, such as quantum computing and semiconductor products, in response to China's growing dominance in the global chip industry.
• Quantum computers and components, advanced chipmaking tools, semiconductor technology, metal and metal alloy components, and high-bandwidth chips for AI applications are all covered by the controls.
• The global industry has shown some hesitation in response to the U.S.'s increased efforts to restrict China's growth.

The Biden administration is imposing new export restrictions on critical technologies, such as quantum computing and semiconductor products, in response to China's growing dominance in the global chip industry.

The U.S. Department of Commerce released rules on Friday covering quantum computers and components, advanced chipmaking tools, some metal-related components and software, and high-bandwidth chips, essential for AI applications.

The move was motivated by "national security and foreign policy reasons" and resulted from extensive discussions with international partners, as stated by the department.

The Bureau of Industry and Security (BIS) anticipates that more countries will implement similar export controls, as seen in Japan and the Netherlands.

Alan Estevez, under secretary of the bureau, stated that today's action will keep our national export controls in sync with rapidly advancing technologies and be more effective when we collaborate with international partners.

By aligning our controls on quantum and other advanced technologies, we make it significantly more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security.

Officials will hold a 60-day public comment period before issuing a final ruling.

Both China and the U.S. aim to be leaders in quantum computing, viewing it as a transformative technology.

The controls in the documents align with the Biden administration's efforts to restrict Beijing's advancements in areas such as AI and computing, even though China is not explicitly mentioned.

BIS is continuing to strengthen its relationships with allies to enhance the effectiveness of export controls aimed at diminishing Russia's military capabilities and those who support them, including Belarus and Iran.

U.S. export control efforts hit road bumps

Beijing has intensified its efforts to become self-sufficient in technology, investing billions in critical industries to bolster its chip-making capabilities despite increased restrictions and sanctions from the US.

According to Nikkei Asia, a recent analysis by Tokyo-based semiconductor research company TechanaLye revealed that Chinese-made processor chips are only three years behind the industry leader.

The global industry has shown some hesitation in response to the U.S.'s increasing restrictions.

The world's leading semiconductor companies, including those in the U.S., continue to have China as their key clients, making it the largest semiconductor market globally.

The CEO of ASML, a Dutch chip equipment company restricted from selling its advanced semiconductor equipment to China, reportedly stated that the U.S.-led restrictions have become more economically motivated and he anticipates more pushback.

The Dutch government will consider ASML's economic interests when deciding whether to tighten semiconductor export rules.

If the U.S. wants Seoul to comply with additional export curbs on China's semiconductors, it should offer more incentives, according to South Korean Trade Minister Cheong Inkyo.

The U.S. and its allies' chip restrictions are considered anti-competitive by Beijing and negatively impact the global semiconductor supply chain.