China “firmly opposes” the Netherlands’ plan to expand export controls over certain semiconductor equipment (see 2501150057), which “threatens the stability of the global semiconductor industry chain and supply chain,” a Chinese Commerce Ministry spokesperson said this week at a regular press conference, according to an unofficial translation. The spokesperson said Beijing has “expressed its deep concern” to the Netherlands and said it hopes the country will “respect market principles,” the “spirit of contract” and the “legitimate rights and interests of companies from all countries, including Chinese and Dutch companies.”
China pushed back this week against the Biden administration’s latest round of semiconductor-related export controls (see 2501130026 and 2501150040) and Entity Listings (see 2501150016), saying they risk further straining trade ties between the two countries. Beijing also added four more U.S. defense companies to its so-called unreliable entity list and said it’s reviewing whether U.S. subsidies for the American chip industry are unfairly propping up U.S. exports of legacy semiconductors.
The Biden administration’s last-minute publication of complex, consequential national security-related rulemakings appear to “bypass standard rulemaking processes” and are creating challenges for American technology companies, six trade groups representing major U.S. tech firms wrote in a letter to President Joe Biden earlier this week.
Scott Bessent, President-elect Donald Trump’s choice for Treasury secretary, said Jan. 16 that the U.S. should institute a “very rigorous screening process” to ensure its outbound investment does not help China catch up to the U.S. in such key technology areas as artificial intelligence, computing chips, quantum computing and surveillance.
The European Commission this week called on member states to carry out a 15-month review of ongoing and past outbound investments in the semiconductors, artificial intelligence and quantum technology sectors, which will help the bloc “assess risks to economic security potentially arising from such transactions.”
The Bureau of Industry and Security this week issued a summary of the various export control actions it has taken under the Biden administration, including its various semiconductor-related rules, export restrictions against Russia, Entity Listings, academic outreach efforts (see 2408140049) and more. It also highlighted the administration’s export control work with U.S. allies, including with the U.K. and Australia under the AUKUS partnership (see 2404180035), initiatives with Japan and South Korea (see 2404260067), and enforcement coordination with the Group of 7 nations (see 2409250004).
The Netherlands on Jan. 15 announced expanded export controls to cover more advanced semiconductor equipment, a move the country’s foreign ministry said is necessary to address increasing “security risks associated with the uncontrolled export of these technologies.”
The Bureau of Industry and Security is adding 27 technology companies to the Entity List, mostly in China, for helping Beijing make or procure advanced semiconductors or for supporting the country’s military modernization efforts through AI, the agency said in two final rules released Jan. 15 and effective Jan. 16. It’s also removing three entities tied to an Indian atomic energy agency.
The Bureau of Industry and Security announced another set of changes to its semiconductor-related export controls Jan. 15, creating new lists of trusted chip designers and service providers, introducing new reporting requirements for certain higher-risk customers and making a host of other revisions, clarifications and updates to its existing restrictions, including its latest advanced AI chip controls released earlier this week.
The EU is “concerned” about the Bureau of Industry and Security's new export controls on advanced AI chips (see 2501130026), which will impose new restrictions on certain EU member states and their companies, the bloc’s top two technology and trade officials said in a joint statement this week.