The United States government unveiled major new restrictions on Monday aimed at limiting China's ability to develop and manufacture advanced AI chips, particularly those used for artificial intelligence applications.
The sweeping export controls, announced by the Department of Commerce, block China's access to 24 categories of chip manufacturing equipment and three key software programs. The measures also restrict sales of high-bandwidth memory (HBM) components commonly used in AI chip development.
Commerce Secretary Gina Raimondo described these as the toughest controls ever enacted against China's chip industry. The move comes as part of broader U.S. efforts to prevent China from using cutting-edge semiconductors for military applications and AI weapons development.
The new rules eliminate previous thresholds that allowed some foreign-made chip equipment containing U.S. technology to be exported to China. Now, even minimal U.S. content in foreign products can trigger export restrictions. This closes important loopholes that Chinese companies previously exploited.
The Commerce Department also added 140 Chinese entities to a restricted trade list, including chip manufacturers halted, tool makers, and investment firms. These companies now require special licenses to receive U.S. technology or products.
China strongly opposes these measures. Foreign Ministry spokesperson Mao Ning accused the U.S. of disrupting international trade and using national security as an excuse to suppress Chinese industry.
The restrictions target not just finished chips, but the entire semiconductor supply chain - from manufacturing equipment to software tools. This comprehensive approach aims to slow China's progress in developing domestic chip production capabilities, which Beijing has heavily subsidized.
To help companies comply, the Commerce Department issued new guidelines highlighting suspicious business arrangements, like when companies appear connected to sanctioned entities through shared facilities or infrastructure.
These controls mark a major escalation in U.S.-China technology competition, reflecting growing concerns about China's advancing semiconductor capabilities and their potential military applications. The measures will likely strain an already tense trade relationship between the world's two largest economies.