Illustration: Eniola Odetunde/Axios
With strict limits already in place on China’s access to U.S. technology, the federal government is exploring how to further tighten the vise amid growing political and economic tensions.
Between the lines: Cracking down on China has support from both parties, though there isn’t always agreement on exactly which steps to take.
Here are three areas where the latest crackdown is taking place:
In a move designed to significantly limit China’s ability to grow its own semiconductor industry, the U.S. has convinced the Netherlands and Japan to greatly curtail their exports of leading-edge chipmaking gear to China.
Driving the news: In a new report out today and shared first with Axios, the Center for Strategic and International Studies says that the deal, struck last month, appears to limit sales of two key emerging chipmaking techniques — extreme UV and argon fluoride immersion.
Getting Japan and the Netherlands on board was key: Those two countries alone entirely control the market for the lithography tools needed to make the next generations of chips.
The House Foreign Affairs Committee on Wednesday advanced a bill that would effectively ban TikTok in the U.S.
The U.S. has already significantly restricted Huawei’s access to U.S. technologies, crippling the company’s global smartphone business and significantly impacting other parts of its business.
Yes, but: Each of these U.S. moves would inflict near-term pain on China — but at the risk of pushing it towards greater technological independence and potentially making it a stronger long-term global rival in areas like semiconductors and software.
The big picture: This decoupling, which has been under way since the Trump Administration, is thorny given how dependent the U.S. is on China for tech manufacturing. Until recently, many U.S. companies also viewed China as a major emerging market for their products.
That’s why the deal with the Netherlands and Japan was so important.
What’s next: Experts say that the U.S. and its allies may look to further limit exports to China should that country provide weapons to Russia for its war in Ukraine.