The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has taken decisive steps to restrict China’s capabilities in semiconductor production. New regulations aim to further limit China‘s access to advanced-node semiconductors, crucial for technologies such as advanced weapon systems, AI, and computing. These components play a significant role in military applications, prompting BIS to align these measures with broader efforts to curb China’s military modernization.
Among the new rules are controls on 24 types of semiconductor manufacturing equipment and three software tools essential for semiconductor development. Also included are restrictions on high-bandwidth memory (HBM) and new compliance measures with added guidance to avert risks related to compliance and diversion. Notably, 140 entities and 14 modifications have been incorporated into the Entity List, targeting Chinese toolmakers and investment firms linked to China’s military enhancement.
U.S. Secretary of Commerce Gina Raimondo emphasized, “This action represents the culmination of the U.S. Government’s targeted strategy… to constrain China’s ability to indigenize advanced technologies that threaten our national security.” National Security Advisor Jake Sullivan also supported this approach, stating that these measures are part of ongoing efforts to safeguard U.S. technology from misuse by adversaries.
The initiative highlights concerns regarding China’s military-civil Fusion strategy, which could lead to the diversion of advanced technologies into military systems. Assistant Secretary of Commerce for Export Administration Thea Rozman Kendler expressed that this presentation of restrictions is aimed at protecting U.S. security without disrupting legitimate trade.
BIS also pointed to advances in large-scale AI models demonstrating extraordinary improvements in human-like capabilities, which pose potential risks in military and intelligence contexts. These include battlefield response, cyber warfare, and the application of facial and voice recognition technologies for surveillance.
Moreover, BIS observed China’s extensive strategy in semiconductor development, driven by national mandates and incentives. This initiative aims to reshape the global semiconductor landscape to benefit China, often at the expense of U.S. interests. The BIS actions reflect a strategic stance to challenge this movement, focusing on the protection of collective security while enabling legitimate technological exchanges.
