The Trump administration is reportedly seeking to tighten control over semiconductor technology sales to China in an effort to protect US national security interests. According to reports from Bloomberg News, the administration is planning to change regulations that currently allow American companies to circumvent restrictions on selling certain types of microchips to China.
These changes come in response to concerns that Chinese companies, many of which are state-backed, are attempting to obtain advanced technology that could be used for military or surveillance purposes. The administration is considering expanding the so-called “deemed export” rule, which currently limits the ability of foreign nationals working in the US to access certain technology, to include the sale of semiconductor technology to China.
The move is likely to escalate tensions between the US and China, which have been locked in a trade war for over a year. The Trump administration has already targeted Chinese telecom giant Huawei with restrictions on its access to American technology, citing national security concerns.
The semiconductor industry is crucial to both countries, as it forms the backbone of modern technology and is used in a wide range of applications from smartphones to military systems. Any restrictions on chip sales to China could have a significant impact on both the US and Chinese economies.
It remains to be seen how China will respond to these latest moves by the Trump administration, but the escalating trade tensions between the two countries are likely to continue to reverberate throughout the global economy.
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