U.S. Chamber of Commerce Warns of New Export Restrictions on China

TMTPOST — The U.S. Biden administration is set to announce a fresh round of export restrictions targeting China as early as next week, according to an email from the U.S. Chamber of Commerce.

The new measures could place up to 200 Chinese semiconductor companies on a trade restriction list, effectively barring most U.S. suppliers from doing business with the designated firms. The email, sent to Chamber members on Thursday, stated that the U.S. Commerce Department plans to issue the regulations before the Thanksgiving holiday on November 28.

If confirmed, the move shows the Biden administration's commitment to tightening export controls on China, even as Republican President-elect Donald Trump prepares to take office in January. These efforts aim to curtail China's access to critical semiconductor technology amid concerns it could be leveraged to strengthen its military capabilities.

In addition to this imminent announcement, further regulations targeting shipments of high-bandwidth memory chips to China are anticipated next month. These will reportedly be part of a broader initiative to curb China's advancements in artificial intelligence technology, according to the email.

Sources familiar with the situation indicated that the initial regulations are expected to include restrictions on the export of chipmaking tools to China. In July, the Biden administration announced plans to add approximately 120 Chinese entities to the U.S. restricted trade list as part of a broader package of export controls.

The Biden administration has already implemented several measures to block China's access to advanced technologies, emphasizing national security concerns. These new restrictions would further tighten the grip on China's semiconductor industry and its broader technological ambitions.

In response to growing restrictions, China has ramped up its semiconductor imports. According to China’s General Administration of Customs, the country imported 4,556.2 billion integrated circuits (ICs) from January to October 2024, a 15% year-on-year increase. The total value of these imports reached $315.37 billion, up 11.3%. In October alone, IC imports were valued at $34.26 billion, reflecting a modest 0.1% year-on-year increase.

Jinan-based Lujing Semiconductor expressed concerns about the tightening measures of the Trump administration. While Biden's policies target advanced technologies, Trump’s proposals—such as a 60% tariff on Chinese goods—could disrupt the entire semiconductor supply chain, including mature technologies.

In a statement on its official account, Lujing Semiconductor emphasized the importance of self-reliance, saying “Trump’s first term highlighted the critical need for localization in the semiconductor industry. His return may impose even greater pressure, but China’s vast market and robust industry remain attractive to the global supply chain. With sustained efforts in market-driven and international collaboration, China can effectively navigate U.S. sanctions.”

Chinese Foreign Ministry spokesperson Lin Jian has reiterated Beijing’s opposition to U.S. export controls, calling the measures a politicization and weaponization of trade and technology issues.

China has vowed to closely monitor the situation and safeguard its legitimate rights and interests. Lin urged the global community to reject coercion and uphold a fair and open international trade order.