US Commerce Department reporters plan to restrict US companies and citizens from making chips for China

US Commerce Department reporters plan to restrict US companies and citizens from making chips for China

Sec.  Raimondo doubles down on Biden's plan to limit semiconductor chip exports to China

US Commerce Secretary Gina Raimondo doubled down on the Biden administration’s controversial plan to bar US companies and citizens from helping China produce advanced semiconductor chips, saying: “We need to protect the American people from China. Period. Period.”

“China has become more aggressive in what they call their military-civilian fusion strategy, which is basically a fancy story about buying our sophisticated chips, ostensibly for commercial purposes,” Raimondo said in an interview Thursday with CNBC. Jim Cramer. China, however, is using those chips in military equipment that US officials worry could be used against America, she said. “This is the most strategic, boldest move we’ve ever made to say no, we’re not going to take it.”

In October, the Biden administration imposed an export ban restrictions on semiconductors produced in China by American companies. The administration has also called on US allies to impose similar restrictions. “I think you’re going to see other countries follow us,” she said.

US chipmakers will have to get permission from the Commerce Department to export certain chips that can be used in modern weapons systems. Commerce has also issued license restrictions barring US citizens from working for China’s chip manufacturing industry, putting their US citizenship at risk.

Raimondo says the new rule is “necessary” despite depriving some U.S. companies of some revenue.”

The Commerce Secretary added that the regulations are not designed to penalize American companies.

“This is targeted. We didn’t do it on day one. We’ve been working on it for a year. It’s powerful, but it’s also meant to get the job of national security done, not punish American companies,” Raimondo said.

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