US is urging chipmaking allies like Japan, Netherlands to tighten restrictions on China

The United States is urging Japan and the Netherlands to strengthen restrictions on exports of chipmaking equipment to China, citing worries over advances made by blacklisted Chinese tech companies such as Huawei and SMIC.

Washington implemented export controls in October 2022 to hinder Chinese efforts in acquiring high-performance semiconductors for potential military applications. The Netherlands and Japan, renowned for their expertise in producing advanced chipmaking equipment, joined the US by enforcing export restrictions on sophisticated machines and components.

Despite these measures, Chinese firms like Huawei and Semiconductor Manufacturing International Corporation (SMIC), both blacklisted by the US, announced in August that they had developed an advanced chip used in Huawei’s Mate 60 series phone.

The Biden administration is pushing Tokyo and The Hague to further tighten controls to address gaps in the existing regulations. Possible measures include restricting exports of less sophisticated machines and introducing limitations on servicing and repairs for machines already bought by Chinese clients before the controls were implemented.

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Efforts to coordinate export controls are underway, with The Hague pressing Brussels to avoid fragmentation of controls within the EU. Meanwhile, Washington is also seeking similar controls from South Korea, though the country's companies do not manufacture equipment as advanced as those from the Netherlands and Japan.

Concerns have been raised over Japanese and South Korean semiconductor companies selling critical equipment parts to sanctioned Chinese entities following the suspension of deliveries by US companies due to export controls.

Chinese imports of foreign semiconductor equipment surged to record highs last summer ahead of the Dutch and Japanese controls, indicating preparation by Chinese chipmakers for impending restrictions.

Chinese Foreign Minister Wang Yi condemned US efforts to restrict China's access to advanced technologies, calling them tactics to suppress China and warning of potential harm to the US itself.

The talks between the US and its allies underscore the growing tensions surrounding technology exports to China, as countries seek to balance economic interests with national security concerns.

(With inputs from agencies)