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US-China relations
China

Semiconductor export curbs hitting China to be followed by biotech and AI restrictions: US official

  • American national security, rather than ‘economic destruction of China’, drives ‘targeted shutdown’ of industry, senior official contends
  • Effectiveness of unilateral controls said to depend on unified stance from key allies, including advanced chip tool maker Japan

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US President Joe Biden listens to IBM CEO Arvind Krishna during a tour of IBM’s facility in Poughkeepsie, New York, on October 6, when the company announced a multibillion-dollar investment in quantum computing, semiconductor manufacturing and other hi-tech areas. Photo: AFP via Getty Images/TNS
Mark Magnierin New York
Sweeping export controls announced earlier this month on high-end semiconductors and chip-making tools to China will almost certainly be followed by similar curbs on quantum computing, high-end biotechnology and artificial intelligence software given an overriding US focus on protecting national security over trade or the implications for US companies or the Chinese economy, a senior US official said Thursday.
The administration of President Joe Biden has announced these rules unilaterally, but is aware their effectiveness depends on a unified stance from key allies, including advanced chip tool makers Japan and the Netherlands, with a multilateral agreement expected soon, said Alan Estevez, industry and security undersecretary at the US Commerce Department, adding that the intent is not to impede China economically.

“Will we end up doing something in those areas? If I was a betting person, I would put money on that,” said Estevez, who oversees the Bureau of Industry and Security charged with crafting and enforcing the new rules.

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“That is not, despite some of the views out there, about the economic destruction of China,” he added. “This is about national security.”

Estevez, who joined the Commerce Department after a 36-year career with the Defence Department, said the fact that US National Security Adviser Jake Sullivan cited export restrictions weeks before the Commerce Department announcement underscored the priority given across various US agencies.

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“When I see an action that needs to be taken for national security, I have top-down coverage to take care of that regardless of the impact,” he said, adding that Washington would be realistic about what it limits.

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