The controversial proposal by the Biden administration to prohibit American businesses and citizens from assisting China in the production of advanced semiconductor chips received additional support from U.S. Commerce Secretary Gina Raimondo, who stated: “We have to protect the American people against China. Period.
Complete stop In an interview with CNBC’s Jim Cramer on Thursday, Raimondo stated, “China has gotten more aggressive in what they term their military-civil fusion plan, which is just fancy speak for buying our sophisticated processors, which are supposedly for commercial use.” But according to her, China is employing such chips in military hardware that American officials are concerned could be used against their country.
The most calculated and courageous thing we’ve ever done to say “no, we’re not going to stand for that” is now.
Export restrictions were put in place for semiconductors made in China by American companies in October by the Biden administration. The government has also requested that similar limitations be imposed by American allies. She predicted that other nations will follow us.
The Commerce Department will require American chip manufacturers to obtain a licence before they can export specific chips that can be used in contemporary weaponry. Additionally, the Department of Commerce put Americans’ citizenship at jeopardy by issuing licence limitations that prevent them from working for China’s semiconductor manufacturing sector.
Even though the new law prevents some American corporations from earning some money, Raimondo claims it is “essential.”
The regulations, the Commerce Secretary said, are not intended to penalise American companies.
“This is deliberate. On the first day, we didn’t do this. For a year, we’ve been working on this. It is strong, but it is also focused to accomplish the task of ensuring national security without harming American businesses, according to Raimondo.