New US curbs on chip exports to China set to escalate battle for tech supremacy

Tightened controls aim to close loopholes and prevent China’s development of AI for military use, US commerce secretary says

Observers say the response from Beijing so far has been measured, while Washington ‘has become increasingly pragmatic’

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The US has tightened export controls on China’s access to cutting-edge computer chips and manufacturing equipment. Photo: Shutterstock

Published: 12:00pm, 22 Oct 2023Updated: 12:07pm, 22 Oct 2023

Washington’s tightening of chip curbs on Beijing this week will intensify their battle for tech superiority and add more uncertainty to the relationship, according to observers.

They said the US move could also overshadow a possible meeting between the Chinese and US presidents at next month’s Asia-Pacific Economic Cooperation forum in San Francisco.

The US commerce department unveiled new rules on Tuesday to upgrade its sweeping export controls on China’s access to cutting-edge computer chips and manufacturing equipment announced by Washington a year ago.

US Commerce Secretary Gina Raimondo said the new rules “confront the threats to our national security” posed by the Chinese government’s military-civil fusion strategy. Photo: Reuters

The new rules aim to close loopholes in the previous curbs and prevent China’s development of artificial intelligence for military use, according to US Commerce Secretary Gina Raimondo.

“Today’s updated rules will increase effectiveness of our controls and further shut off pathways to evade our restrictions. These controls maintain our clear focus on military applications and confront the threats to our national security posed by the PRC government’s military-civil fusion strategy,” she said, using the acronym for China’s official name – the People’s Republic of China.

“The vast majority of semiconductors will remain unrestricted. But when we identify national security or human rights threats, we will act decisively and in concert with our allies,” she added.

China’s commerce ministry on Wednesday said Beijing was “strongly dissatisfied with and firmly opposes” the latest chip curbs, claiming Washington “abuses export control measures and implements unilateral bullying”.