Western Suppliers Cut Ties with Chinese Chipmakers as U.S. Curbs Bite

It is common for Western companies to broadly suspend exports in the immediate wake of new U.S. restrictions, and then resume some later, once they decipher the rules, lawyers say. But national-security experts say the new restrictions, which aim to stop China from producing advanced chips, are among the toughest the United States has enacted.

“I see these export controls as being hugely consequential. It goes straight to the heart of Beijing’s efforts to create a domestic world class semiconductor industry,” said Martijn Rasser, senior fellow at the Center for a New American Security. In particular, a new rule preventing “U.S. persons” from supporting certain Chinese chipmakers “won’t just freeze China’s abilities in place, it will actually lead to a degradation over time,” Rasser said.

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