U.S. Goes Full-Court Press on China’s Chip Sector
Wall Street JournalDec 23, 2022
The Facts
The US government has allowed at least two non-Chinese chipmakers operating in China to receive restricted goods and services without their suppliers seeking licenses, industry sources have said.
Previously, the Biden administration said that they would grant licenses to supply non-Chinese chip factories on a case-by-case basis. However, Wednesday's news suggests a circumvention of US prohibitions on the industry, as Chinese chipmakers currently face a presumption of denial when it comes to production licenses.
The Spin
Pro-China narrative
Biden's restrictions will not affect Chinese markets, only dampen US exports. China has retained a large market for its data chips, and the vast majority of customers for Chinese companies fall outside the specification that would see them subjected to restrictions established in the CHIPS act.
Anti-China narrative
Chips developed by Chinese companies could be used to produce advanced weaponry systems or even weapons of mass destruction. US restrictions on semiconductor production will protect American interests and security while also ensuring American technological leadership and innovation.
