[Asia Economy Reporter Hyunwoo Lee] Hardline lawmakers in the U.S. Congress have reportedly urged the U.S. Department of Commerce to strengthen export restrictions on semiconductor manufacturing equipment and programs to Chinese semiconductor companies. Following the Huawei sanctions, there is growing speculation that broader sanctions against Chinese companies may begin.
According to AP News and major foreign media on the 15th (local time), hardline lawmakers such as Republican Senator Tom Cotton and Representative Michael McCaul sent a letter to U.S. Secretary of Commerce Gina Raimondo strongly demanding that "the regulation requiring U.S. approval to sell semiconductors manufactured overseas using U.S. technology to Huawei should be applied to all Chinese companies designing advanced semiconductors at 14 nanometers (nm) or below."
The letter reportedly also called for including semiconductor design automation (EDA) software among the items requiring prior export approval to China. Additionally, the letter stated, "The reason these restrictions are necessary is to prevent the Chinese communists from obtaining the rope they use to hang not only foreign partners and allies but also American companies," adding that "this is only about half of what strong action should be."
The U.S. Department of Commerce has not commented on the letter but reportedly designated seven Chinese supercomputing companies for sanctions last week and stated that it is continuing to consider additional measures. Earlier, on the 8th, the Department of Commerce blacklisted Chinese supercomputing companies including Tianjin Phytium Information Technology, citing their involvement in the Chinese military’s supercomputer production, modernization efforts, and weapons of mass destruction (WMD) programs.
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