Biden Administration Imposes New Export Controls on China

The Biden administration is set to implement its third round of export controls on China's semiconductor industry, targeting 140 Chinese entities, including major firms like Naura Technology Group and Semiconductor Manufacturing International Corporation. The new restrictions aim to curb China's capabilities in AI and defense technology by limiting exports of advanced chips and chipmaking tools. This move has led to a decline in Nvidia's stock, amid concerns about potential losses in sales from the Chinese market. Commerce Secretary Gina Raimondo stated these controls are the strongest yet, reflecting ongoing national security concerns regarding China's military advancements. These controls are expected to be the last major sanctions before President-elect Donald Trump's inauguration, with China preparing for potential further restrictions. The U.S. has been engaged in a prolonged technological competition with China, which has been making strides in semiconductor self-sufficiency despite previous sanctions.