https://www.cnbc.com/2020/02/17/tru...mits-to-chinas-access-to-chip-technology.html
KEY POINTS
The Commerce Department is considering requiring chip factories globally to obtain licenses if they want to use American equipment to create chips for Huawei, The Wall Street Journal reported.
The Trump administration is trying to cut off China’s access to the U.S. semiconductors, one of China’s largest imports from America.
The proposed changes have not been reviewed by President Donald Trump, according to the Journal.
GP: Employee at semiconductor plant in Zelenograd, Russia
A worker at the photolithography section of a semiconductor plant of the Mikron Group in Zelenograd, Moscow.
Anton Novoderezhkin | TASS | Getty Images
The Trump administration is weighing trade restrictions on China that would limit the use of American chip-making equipment, The Wall Street Journal reported Monday.
People familiar with the matter told the Journal that the Commerce Department is drafting changes to the foreign direct product rule that would require chip factories globally to obtain licenses if they want to use American equipment to create chips for Huawei.
The proposed rule comes as the Trump administration looks to cut off China’s access to the U.S. semiconductors, one of China’s largest imports from America. Many U.S. officials have argued that Huawei’s equipment could be used for espionage by the Chinese government, although the company denies those claims and says its equipment is secure. A separate rule would limit the ability of U.S. companies to supply Huawei from overseas facilities.
The proposed changes could also harm U.S. manufacturers of semiconductor equipment, like Applied Materials and Lam Research.
The changes have not been reviewed by President Donald Trump and not everyone supports the proposed rule, the newspaper reported.
The Commerce Department declined to comment on the proposed rule to CNBC.
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Things don't seem to be settling down and I feel in the long term this will damage economic relations not just between US/China but with other nations as the standard norms of international relations are being tested right now.
Other news is Trump Admin is threatening countries who use 5G equipment and stopping all intelligence sharing.
KEY POINTS
The Commerce Department is considering requiring chip factories globally to obtain licenses if they want to use American equipment to create chips for Huawei, The Wall Street Journal reported.
The Trump administration is trying to cut off China’s access to the U.S. semiconductors, one of China’s largest imports from America.
The proposed changes have not been reviewed by President Donald Trump, according to the Journal.
GP: Employee at semiconductor plant in Zelenograd, Russia
A worker at the photolithography section of a semiconductor plant of the Mikron Group in Zelenograd, Moscow.
Anton Novoderezhkin | TASS | Getty Images
The Trump administration is weighing trade restrictions on China that would limit the use of American chip-making equipment, The Wall Street Journal reported Monday.
People familiar with the matter told the Journal that the Commerce Department is drafting changes to the foreign direct product rule that would require chip factories globally to obtain licenses if they want to use American equipment to create chips for Huawei.
The proposed rule comes as the Trump administration looks to cut off China’s access to the U.S. semiconductors, one of China’s largest imports from America. Many U.S. officials have argued that Huawei’s equipment could be used for espionage by the Chinese government, although the company denies those claims and says its equipment is secure. A separate rule would limit the ability of U.S. companies to supply Huawei from overseas facilities.
The proposed changes could also harm U.S. manufacturers of semiconductor equipment, like Applied Materials and Lam Research.
The changes have not been reviewed by President Donald Trump and not everyone supports the proposed rule, the newspaper reported.
The Commerce Department declined to comment on the proposed rule to CNBC.
----------------
Things don't seem to be settling down and I feel in the long term this will damage economic relations not just between US/China but with other nations as the standard norms of international relations are being tested right now.
Other news is Trump Admin is threatening countries who use 5G equipment and stopping all intelligence sharing.
