U.S. Lawmakers Urge Stricter Export Controls on Advanced Semiconductors to China

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Two senior Republican members of the U.S. House of Representatives have called on the Biden administration to tighten export controls on advanced semiconductors to China. The lawmakers, Michael McCaul and Mike Gallagher, chairmen of the House Foreign Affairs Committee and the House Select Committee on China respectively, expressed concerns over the Department of Commerce's Bureau of Industry and Security's (BIS) lax enforcement of existing rules. The call for action comes amid advancements by China's Semiconductor Manufacturing International Corporation (SMIC) and Huawei Technologies.

On October 6, 2023, Representatives Michael McCaul and Mike Gallagher sent a letter to Jake Sullivan, the National Security Advisor, outlining their concerns about the BIS's failure to enforce rules set on October 7, 2022. These rules were initially designed to limit the export of advanced semiconductors to China, particularly those that could be used in military applications and human rights abuses.

The lawmakers pointed to recent advancements by SMIC, which they claim have surpassed any current U.S.-based foundry. They also cited the unveiling of Huawei Technologies' Mate 60 Pro smartphone, which incorporates advanced chips manufactured by SMIC, despite existing U.S. sanctions. According to the letter, «BIS's lack of resolve has led to SMIC being more advanced than any current U.S.-based foundry.»

The letter outlines four immediate actions that BIS must take:

1. Update and issue final Oct. 7, 2022 Rules to limit workarounds for advanced semiconductor and tool exports to China.

2. Take immediate action against SMIC and Huawei, including full blocking sanctions.

3. Close the Cloud Computing Loophole to prevent Chinese companies from