US Tightens Export Controls on Semiconductors to China, Tech "Decoupling" Enters Substantive Enforcement Phase

In September 2022, the U.S. Department of Commerce in Washington D.C. unveiled sweeping new export controls, severely restricting American semiconductor equipment and advanced chip manufacturers from selling to Chinese technology companies, in a bold move to curb China's ability to develop cutting-edge technologies.

The U.S. Department of Commerce announced a set of new export control rules aimed at restricting China's ability to acquire and manufacture advanced semiconductors, particularly those using 14nm process technology and below, along with the associated manufacturing equipment. These rules not only restricted exports by U.S. companies but also utilized the "Foreign Direct Product Rule" to expand restrictions globally to any company using U.S. technology. The measures were designed to impair China’s progress in high-tech fields, particularly Artificial Intelligence and supercomputing capabilities.

This escalation signaled that the technological "decoupling" between the U.S. and China had moved from abstract concept to a substantive enforcement phase, delivering a massive shock to the global semiconductor supply chain. From a conservative perspective, the U.S. government viewed technological advantage as central to national security, and this action was seen as a countermeasure to China's "Military-Civil Fusion" strategy. It forced global semiconductor companies to choose between the U.S. and Chinese markets, accelerating the restructuring of the global semiconductor supply chain and pushing Western nations to establish "secure and reliable" domestic manufacturing capabilities.