US weighs new move to limit China's access to chip technology - report

Author: Justin Low | Category: News

US continues to target Huawei with proposed changes to restrict its use of chip-making equipment from the US

US China
The WSJ reports that the US is weighing new trade restrictions against China to cut off Huawei access to key semiconductor technology, citing people familiar with the plan.

It is reported that the Commerce Department is drafting changes to the foreign direct product rule, to make it so that chip factories overseas would need licenses if they intend to use American equipment to produce chips for Huawei. The full report can be found here.

That will be quite the change if it goes through as I reckon it won't only add to more tensions between the US and China but also lead to further supply chain disruption in the industry as there will be a chunk of companies who will be restricted to do business.

But this once again goes to show that any real conciliation between the US and China on trade and other matters is still far away. The fact that the US wants to cut China off one of its key imports goes to show that these two are still clearly "at war".
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