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House Republicans Demand Tougher Export Rules for Cutting-Edge Chips

By Martha Grizzard
Oct 9, 2023
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Two senior Republican members of the U.S. House of Representatives, Rep. Michael McCaul and Rep. Mike Gallagher, have called upon the Biden administration to bolster the enforcement of export controls concerning China's advanced semiconductor technology. In a letter addressed to National Security Adviser Jake Sullivan, they expressed their concern over perceived shortcomings and "loopholes" in the current regulations, particularly in light of recent developments in China's semiconductor industry.

The lawmakers specifically referenced China's prominent semiconductor manufacturer, Semiconductor Manufacturing International Corporation (SMIC), and the release of Huawei Technologies Co.'s Mate 60 Pro smartphone, which utilizes advanced chips produced by SMIC. Despite U.S. sanctions, these events have raised questions about the efficacy of existing regulations in curbing the technological progress of Chinese entities.

In their letter, McCaul and Gallagher criticized the recent regulations introduced on October 7, stating that they highlight the bureaucratic limitations in understanding China's industrial strategy, military objectives, and technological advancements. They also pointed out a perceived lack of determination to take decisive action in response to these challenges.

The lawmakers are urging the Biden administration to modernize existing regulations swiftly, particularly in response to developments involving Huawei and SMIC. They emphasized the importance of curtailing the ability of Chinese companies to access powerful artificial intelligence chips through cloud computing services. Additionally, they stressed the need for robust enforcement of current government regulations that impose restrictions on Chinese companies and prevent the evasion of U.S. export regulations.

In conclusion, McCaul and Gallagher called for a proactive approach to address the evolving landscape of advanced semiconductor technology and its implications for national security.

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