US bans tech from China for 10 yrs, Beijing says door closed to UN Human Rights as West weighs Xinjiang action & Sino-Russian military ties bolstered by Ukraine invasion -- China Boss News 9.12.22
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US bans advanced tech firms from China for 10 years
“US technology firms that receive government funding will be banned from building ‘advanced technology facilities’ in China for a decade,” The Guardian reported citing a US Department of Commerce announcement at the White House last week. The control on tech transfer to China is part of the “US’s government’s near-$53bn (£46bn) plan to scale up manufacturing of semiconductor chips,” the paper said. The US Chips and Science Act (CHIP) was passed by Congress in August to address global shortages of computer chips and bolster competition with China.
The Guardian:
Global shortages of computer chips, prompted by the coronavirus pandemic, have caused large production delays for carmakers in the UK and beyond, as well as for technology companies and other manufacturers.
In addition, the industry has gained increased geopolitical prominence as China has begun asserting itself on the world stage under its president, Xi Jinping, including threatening Taiwan.
VOA News also reported that Commerce Secretary Gina Raimondo referenced the new rules when discussing the ban, saying “[c]ompanies who receive CHIP funds can't build leading-edge or advanced technology facilities in China for a period of 10 years," and that they “can only expand their mature node factories in China to serve the Chinese market." “Mature node factories” are plants that manufacture semiconductors using “older technology that is already widely available.”
Raimondo added that the Commerce Department “hoped to begin seeking applications by next February for $39bn in government semiconductor subsidies to build new production facilities in the US,” The Guardian said.
The Guardian:
“We’re also going to be implementing the guardrails to ensure those who receive Chips funds cannot compromise national security,” the US commerce secretary, Gina Raimondo, said. “They’re not allowed to use this money to invest in China; they can’t develop leading-edge technologies in China; they can’t send latest technology overseas.”
… “These funds are intended to help companies maximise the scale of their projects. We’re going to be pushing companies to go bigger and be bolder,” Raimondo said. “We’re going to negotiate these deals one at a time,” she added, saying the companies receiving government funds would need to “prove to us the money is absolutely necessary to make these investments”.
For the rest of The Guardian’s update, US bans ‘advanced tech’ firms from building facilities in China for a decade, click here. For VOA’s report, US Moves to Keep Advanced Semiconductor Technology Out of China, click here.
Law and International Xi
Beijing says door closed to UN’s Human Rights as West weighs Xinjiang action
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