Report on the United States Plans to Limit Export of Microchips to China

Some insiders say, the management team of United States President Joe Biden is expected to unveil the latest measures that limit Chinese companies' access to high-end computing technologies. The latest in a series of attempts to stymie Beijing's plans to develop successful weapons and automate vast surveillance systems.

The sanctions, which might be unveiled this week, will curtail China's access to sophisticated semiconductor technology. They would add to a Trump-era law that banned corporations from transferring Chinese technology, machinery, or software.

Two individuals who were aware of the measures said additional Chinese corporations, government labs, and other groups would face similar limitations as Huawei. Any company that uses American technology would be prohibited from selling to designated Chinese organizations. Unknown Chinese enterprises and labs may be affected.

Washington plans to expand "foreign direct product regulation." The government is also anticipated to try to regulate the sale of U.S.-made semiconductor tools to China.

Washington proposes to prohibit U.S. microprocessor sales to China's most advanced supercomputing and data center projects. Because of this limit, Alibaba and Tencent might not be able to get the parts they need to build the best data centers and supercomputers.

As supercomputer capability rises, the restriction might impede China's capacity to create sophisticated number-crunching technologies used in biosciences, AI, and missile engineering. The report says restrictions on semiconductors and chip-making gear.

The Joe Biden management is also preparing an executive order that'd empower the government to review U.S. corporations' foreign investments for national security threats and explore other steps that may apply to Chinese memory-chip producer YMTC, sources said.

Orville Schell, a prominent China specialist at the Asia Society, said the U.S. government is working to segregate American and Chinese distribution networks for semiconductors and semiconductor technologies.

United States authorities are growing concerned about Chinese businesses that create midrange chips, not simply the tiniest, most cutting-edge advanced technologies, Schell said. Chinese officials do not want Chinese chip manufacturers to use technology from the United States or other partner countries to produce obsolete weapons components.They don't want Chinese enterprises to grow globally.YMTC is a perfect example of this type of organization, he said.

The White House didn't comment on the limits. A representative from the Bureau of Industries and Safety at the Office of the Trade Representative said they couldn't confirm anything right now.

If passed, the sanctions would be the U.S.'s greatest drive yet against China's supercomputer and data center markets. Many Chinese institutions, state-run corporations, and internet firms operate supercomputers. Analysts and researchers have found out how some are used for bad things, like tracking traffic on the roads or messing with social networks.

China uses supercomputers for intrusive surveillance of ethnic minorities. Beijing has employed others to simulate nuclear explosions and create next-generation weapons.

The Joe Biden administration wants to deprive China of crucial technology while injecting money into U.S. chip manufacturing. Beijing is ramping up its attack on Taiwan, which makes most of the world's sophisticated semiconductors.

The Biden administration says its comprehensive use of export curbs would destroy Russia's defense, technology, energy, and other important industries in the long run. U.S. officials said they could use the same tool in China to solve national security issues. The officials said that their controls on Russian companies were based on what the Trump administration did with Huawei.

The Joe Biden administration slapped fresh limitations on computer chip sales to China and Russia last month. These constraints concentrate on high-end GPUs from Nvidia and AMD. The products were first made to make graphics for video games, but they are now essential for teaching computers how to think like humans.

Paul Triolo, senior vice president for China at Albright Stonebridge Group, said the move was "probably the strongest regulatory and export control statement the U.S. has completed with reference to China's right of entry to U.S. technology" and that it came at a sensitive time for the Chinese leadership, ahead of the 20th congress of the Communist Party, which begins Oct. 16.

"The administration is acting," he stated.