US lawmakers push for stricter China chip regulations at White House.
House Republicans Call for Stronger Enforcement of Export Controls on Advanced Computing Chips Sent to China
Two senior House Republicans have urged the Biden administration to enhance the enforcement of export controls on the shipment of advanced computing chips and the necessary machinery to China. They argue that existing U.S. export controls and policies regarding Chinese tech companies are ineffective, allowing these firms to exploit loopholes and make significant advancements in chip technology that pose a national security risk.
In a letter dated Oct. 6 and addressed to national security adviser Jake Sullivan, Chairman Mike Gallagher (R-Wis.) of the House Select Committee on the Chinese Communist Party (CCP) and Chairman Michael McCaul (R-Texas) of the House Foreign Affairs Committee conveyed their concerns. They emphasized that the recent launch of Huawei’s premier smartphone, the Mate 60 Pro, featuring an advanced 7-nanometer chip produced by the Chinese company Semiconductor Manufacturing International Corporation Incorporated (SMIC), despite existing sanctions, highlights the need for stronger enforcement. This chip, known as the Kirin 9000s, includes 5G connectivity capabilities.
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Mr. Gallagher and Mr. McCaul expressed their dissatisfaction with the export control measures unveiled last October and criticized SMIC’s growing capabilities. They argue that the current approach reveals a stagnant bureaucracy that lacks understanding of China’s industrial policy, military goals, and technology. They called for full blocking sanctions against SMIC and Huawei, completely cutting them off from U.S. technology and the financial system.
Huawei and SMIC are currently on the U.S. trade blacklist, known as the Entity List, which prohibits them from purchasing American technology.
The lawmakers urged the administration to take immediate action against these Chinese firms. They emphasized the need to update export controls to prevent workarounds for advanced semiconductor and tool exports to China. Additionally, they called for the closure of the cloud computing loophole, which allows targeted Chinese tech firms to access cutting-edge U.S. chips through third-party cloud providers.
The recent developments have raised concerns, prompting the Commerce Department to launch an official investigation into Huawei’s made-in-China chip. Commerce Secretary Gina Raimondo described the chip breakthrough as “incredibly disturbing” during a Senate Commerce Committee hearing. She emphasized the need for additional resources and tools to enforce export controls effectively.
The Commerce Department has found no evidence to indicate that Huawei or SMIC can produce 7-nanometer chips “at scale.” However, they remain on the Defense Department’s blacklist, which targets companies associated with the Chinese military, the People’s Liberation Army (PLA).
Taiwan authorities have announced an investigation into four local tech companies for allegedly assisting Huawei in building chip factories in southern China. The investigation aims to determine if these firms violate Taiwan’s investment rules, including the export of sensitive technology and military-related products.
Furthermore, a teardown of Huawei’s latest smartphone revealed the presence of memory chips from Korean semiconductor firm SK Hynix, prompting an investigation into the matter.
Reuters contributed to this report.
Why have current U.S. export controls and policies failed to effectively curb China’s technological advancements, and what loopholes have Chinese firms exploited?
Global supply chain. They also insisted on the implementation of stricter export controls on advanced computing chips and machinery sent to China, to prevent the transfer of sensitive technology that could be used for military purposes.
The concern over the export of advanced computing chips to China is not unfounded. China has made significant strides in developing its semiconductor industry, and companies like SMIC have become major players in the global market. These advancements pose a direct threat to U.S. national security, as China’s military modernization heavily relies on advanced chip technology.
The House Republicans argued that the current U.S. export controls and policies regarding Chinese tech companies are ineffective in curbing China’s technological advancements. They pointed out that Chinese firms like Huawei and SMIC have been able to exploit loopholes in the existing system, allowing them to continue developing cutting-edge technology despite the sanctions imposed on them. This not only undermines U.S. efforts to restrict the export of sensitive technology but also puts American companies at a disadvantage in the global market.
The recent launch of Huawei’s Mate 60 Pro smartphone, featuring an advanced chip produced by SMIC, further highlights the urgency of stronger enforcement measures. This 7-nanometer Kirin 9000s chip, with its 5G connectivity capabilities, represents a significant advancement in chip technology. Its availability on the market indicates that current export controls are insufficient in preventing the transfer of sensitive technology to China.
To address these concerns, the House Republicans proposed full blocking sanctions against SMIC and Huawei. This would sever their access to U.S. technology and the global supply chain, effectively crippling their technological capabilities. They also called for stricter export controls on advanced computing chips and necessary machinery sent to China, ensuring that sensitive technology remains out of reach for Chinese companies with potential military applications.
In conclusion, the letter from Chairman Gallagher and Chairman McCaul underscores the need for stronger enforcement of export controls on advanced computing chips sent to China. They argue that current measures are inadequate, allowing Chinese tech companies to exploit loopholes and make significant advancements in chip technology that pose a national security risk. The proposal for full blocking sanctions against SMIC and Huawei, as well as stricter export controls, aims to restrict the transfer of sensitive technology and safeguard U.S. national security interests. It remains to be seen how the Biden administration will respond to these concerns and take action to address the issue.
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