U.S. Commerce Secretary Gina Raimondo doubled down on the Biden administration’s questionable strategy to prohibit U.S. business, and people, from assisting China manufacture advanced semiconductor chips, stating: “We have to protect the American people against China. Period. Full stop.”
“China has become more aggressive in what they call their military-civil fusion strategy, which is essentially fancy talk for buying our sophisticated chips, which are supposedly for commercial purposes,” Raimondo stated in an interview Thursday with CNBC’s JimCramer China, nevertheless, is utilizing those chips in military devices that U.S. authorities stress might be utilized versus America, she stated. “This is the most strategic, most bold move we’ve ever made to say no, we’re not going to stand for that.”
In October, the Biden administration enforced export limitations on semiconductors produced in China by U.S. business. The administration has actually likewise gotten in touch with U.S. allies to release comparable limitations. “I think you’ll see other countries follow us,” she stated.
U.S. chip makers will need to acquire a license from the Commerce Department to export specific chips that can be utilized in modern-day weapons systems. Commerce likewise released license limitations disallowing U.S. people from working for China’s chip production market, putting their U.S. citizenship at threat.
Raimondo states the brand-new guideline is “necessary” regardless of rejecting some income to some U.S. business.”
The Commerce Secretary included that the policies are not created to penalize U.S. services.
“This is targeted. We didn’t do this on the first day. We’ve been dealing with this for a year. It is effective, however it’s likewise targeted to get the nationwide security task done and not penalize U.S. business,” Raimondo stated.
