TAIPEI (Taiwan News) — The US added 140 firms to its trade restriction list on Monday (Dec. 2) in its third crackdown on China’s semiconductor industry.
Nearly all the companies were based in China, per Nikkei Asia. They include 20 semiconductor companies, two investment firms, and over 100 chipmaking tool makers, per Reuters.
US Commerce Secretary Gina Raimondo said the move aims to impair China’s ability to produce advanced technologies. She said such technology could support Beijing's military modernization.
China’s Commerce Ministry said it opposes the latest restrictions. “The semiconductor industry is highly globalized, and the US’s abuse of control measures has seriously hindered normal economic and trade exchanges among countries,” it added.
However, industry analysts say the new controls come too late, allowing China to stockpile important components.
Jamestown Foundation Associate Fellow Sunny Cheung said exempting allies like the Netherlands and Japan have watered down the impact of the measures. “Half-hearted policies like this are a loophole and strategic incompetence toward a competitor, not a defense against them,” he said.