The United States will tighten controls on cutting-edge semiconductor exports to China, the Commerce Department said Tuesday, in the latest step aimed at hobbling Beijing's efforts to advance technologies for its military modernization.
The expansion will restrict Nvidia Corp. and other manufacturers from selling artificial intelligence chips and advanced equipment necessary to produce them to China.
The new controls, upgrading the sweeping chip curbs on China announced by President Joe Biden's administration a year ago, come as senior officials of the world's two largest economies seek to ease tensions and arrange one-on-one talks between their presidents on the sidelines of a multilateral meeting next month.
Along with the United States, other industrialized countries including Japan have also been taking steps to make it harder for China to access critical technologies.
After announcing the initial export controls in October last year, the Biden administration asked Japan and the Netherlands, both of which are home to leading chip-producing equipment makers, for cooperation to stymie China's access to high-tech devices.
Japan updated its restrictions in July, going beyond the initial U.S. curbs by adding 23 devices that are needed to produce the most high-end types of chips. The Netherlands also expanded the scope of its export controls in September.
China has reacted sharply to the U.S. move, filing a complaint with the World Trade Organization in December last year accusing Washington of abusing export rules under the guise of protecting national security.
In apparent retaliation for such restrictions, China rolled out export controls on gallium and germanium in August. The two metals are crucial for producing chips, with China saying the controls are needed to protect its national interests.
Despite considerable disagreements over a number of political and economic issues, senior officials of the two countries have been meeting more frequently over the last several months, as both sides agree on the importance of maintaining open lines of communication.
Biden has also repeatedly said his administration is not seeking to decouple from China, but rather to "de-risk" the relationship, a process aimed at protecting national security and ensuring stable supply chains for strategically vital industrial goods.
Biden has expressed anticipation for face-to-face talks with Chinese President Xi Jinping in mid-November in San Francisco, when the U.S. president hosts the Asia-Pacific Economic Cooperation forum leaders' summit. The two leaders last met in person in November of last year in Indonesia.
