October 7, 2022

The Biden administration on Friday moved to choke off Beijing’s supply of microchips used in advanced computing and military applications, issuing two new rules limiting companies from exporting chips and chipmaking equipment to China while also pushing allies to do the same.

The rules from the Commerce Department’s Bureau of Industry and Security, the details of which were first reported by POLITICO, will also apply new export license requirements to older and less advanced chips destined for Chinese companies, as well as semiconductor manufacturing equipment from U.S. companies previously not covered by BIS rules.

The aim, the agency said, is to “restrict [China’s] ability to obtain advanced computing chips, develop and maintain supercomputers, and manufacture advanced semiconductors” used in military applications.

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