Economy

Biden administration to reach an agreement with allies regarding China export curbs quickly By Stocksak


© Stocksak. FILEPHOTO: Semiconductor chip are seen on the circuit board of a computer in this illustration photo taken February 25, 2022. REUTERS/Florence Lo/Illustration

By Alexandra Alper, Karen Freifeld

WASHINGTON, (Stocksak), — The Biden administration is expected to sign a deal soon with allies to allow them to adopt new U.S. rules to curb China’s access of sophisticated chipmaking tools. A senior Commerce Department official stated on Thursday.

The Commerce Department published a broad set of export controls last month. They include measures that restrict Chinese access to U.S. chipsmaking technology. This greatly expands its reach in its attempt to slow Beijing’s technological and military advancements.

However, it was criticised for failing to convince key allies of similar equipment curbs. As chipmaking equipment is produced by U.S. and Japanese companies, ASML Holding NV (NASDAQ.AS) and Tokyo Electron Ltd, both Dutch and Japanese firms.

“We expect a deal in near term,” Alan Estevez (Undersecretary of Commerce for Industry & Security) said in an interview with CNAS, based in Washington, when asked about what it would take for allies, especially Japan and the Netherlands to implement similar rules.

Estevez answered a question about what parts of the new China export rules could be included in a deal for allies. He said, “We’re looking at everything,” which includes chips and tools.

China will also be unable to purchase certain semiconductor chips made anywhere on the planet using U.S. equipment. Estevez stated that countries could be granted carveouts under the U.S. rules if their domestic regimes are similar.

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