TMTPOST -- The Chinese government cautioned the Biden administration against new curbs on advanced chips sales to China.

Credit：China Daily

The latest U.S. effort to prevent advanced chips being sold to China hinders the development of the global semiconductor industry and will eventually backfire and benefit no one, warned Chinese Foreign Ministry spokesperson Guo Jiakun on Wednesday’s regular press.

Guo reiterated China’s stance on the U.S. malicious attempts to block and suppress China’s semiconductor industry. The U.S. keeps broadening the concept of national security on trade and tech issues and politicizes and weaponizes them, and has repeatedly tightened control over chip export to China and coerced other countries to go after China’s semiconductor industry, Guo commented.

The U.S. government will not stop China’s progress by sanctions, restrictions and suppression, but only strengthen China’s confidence and ability to be self-reliant and technologically innovative, commented a spokesperson with the Ministry of Commerce of China on Wednesday. China will take measures to resolutely safeguard its sovereignty, security and development interests, the spokesperson vowed.

These spokespersons issued their warnings on heels of a fresh round of rules targeting semiconductor companies which have business relationship with Chinese companies. The U.S. Department of Commerce on Wednesday released rules updating export controls on advanced computing semiconductors including artificial intelligence (AI) chips to restrict the PRC’s ability to obtain certain high-end chips critical for military advantage.

The rules impose a broader license requirement for foundries and packaging companies seeking to export certain advanced chips. Companies like Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics that manufacture chips for external customers are required to exercise greater scrutiny over their customers. Chipmakers can bypass licensing requirements if certain conditions are met, such as working with trusted chip packagers and approved designers subject to due diligence and reporting obligations.

The U.S. Commerce Department also announced placing 16 additional Chinese companies on the Entity List, a trade restriction list that makes any entities on it face licensing requirements for certain technologies and goods. These 16 entities including AI companies like Sophgo Technologies Ltd., are acting at the behest of Beijing to further China’s goals of indigenous advanced chip production, which poses a risk to U.S. and allied national security, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) said in a statement.

“These rules will further target and strengthen our controls to help ensure that the PRC and others who seek to circumvent our laws and undermine U.S. national security fail in their efforts,” said U.S. Secretary of Commerce Gina M. Raimondo, referring to the People’s Republic of China. “We will continue to safeguard our national security by restricting access to advanced semiconductors, aggressively enforcing our rules, and proactively addressing new and emerging threats.” 

A day prior to announcement of the new restrictions on advanced semiconductors, the U.S. Commerce Department said it finalized a rule prohibiting certain transactions involving the sale or import of connected vehicles integrating specific pieces of hardware and software, or those components sold separately, with a sufficient nexus to China or Russia.  

The final rule establishes that hardware and software integrated into the Vehicle Connectivity System (VCS) and software integrated into the Automated Driving System (ADS), the systems in vehicles that allow for external connectivity and autonomous driving capabilities, present an undue and unacceptable risk to national security when designed, developed, manufactured, or supplied by persons with a sufficient nexus to China or Russia.

Malicious access to these critical supply chains could allow U.S. foreign adversaries to extract sensitive data, including personal information about vehicle drivers or owners, and remotely manipulate vehicles, said the BIS on Tuesday. “Today’s rule will prohibit Chinese and Russian software and hardware from being used in connected vehicles on American roads, protecting consumers and ensuring a more secure American auto industry.”said National Economic Advisor Lael Brainard the same day.

China firmly opposes the U.S. final rule barring Chinese technology from cars in the American market, said Foreign Ministry spokesperson Guo Jiakun on Wednesday. China urges Washington to stop its wrongdoings of overstretching the concept of national security, and stop going after Chinese companies. China will take necessary measures to firmly defend its lawful rights and interests, said Guo.