In a last-minute tech-policy move before leaving office Joe Biden pushed forward new semi-conductor export limits to China on Dec 2nd‚ which got quick push-back from Beijing
The Commerce Department set-up fresh controls on 24 types of chip-making equipment three software tools and memory chips (plus added 140 companies to its restricted list). China didnt waste time to respond: it blocked exports of key materials like gallium germanium and antimony – which are super-important for tech manufacturing
This action is the culmination of our targeted approach with allies to impair their ability to produce advanced technologies that risk our national security
The US has been working with tech-partners like Japan and Netherlands who make most of the worlds chip equipment. Both got special rules-exemptions‚ but China holds different cards: it controls 94% of gallium 83% of germanium and about half of antimony global stocks
We can play this game and spread the pain across more sectors
Beijingʼs grip on these materials is a huge problem for the US – finding new supplies will take many years. The US Geological Survey thinks a total Chinese export ban could cut US GDP by $3.4-billion‚ mostly hitting chip makers
Looking ahead Donald Trumpʼs incoming team will likely keep tough on China. The new president has history of tech-trade fights from his first term when he went after companies like Huawei and TikTok. Even though Trump might use different methods than Biden experts think the basic tech-control policy will stay the same