US commerce chief says China export controls will hit companies’ revenue

us-commerce-chief-says-china-export-controls-will-hit-companies’-revenue
US commerce chief says China export controls will hit companies’ revenue

The Biden administration is aiming to target U.S. controls on exports to China in a careful manner, according to Commerce Secretary Gina Raimondo. However, she acknowledged that these rules will result in some revenue loss for American companies. Raimondo emphasized the importance of not implementing restrictions that would push China to seek the product from other countries, but she believes that the revenue sacrifice is worth it.

Last week, top executives from U.S. chip companies met with Biden administration officials, including Raimondo, to discuss China policy. The semiconductor lobby group, which is the most influential in the industry, called for a halt to further restrictions. Raimondo stated that the administration is engaging with companies to strike a balance that protects American national security without harming American businesses.

China is a significant player in the semiconductor market, accounting for $180 billion in purchases last year, nearly one-third of the global total. Nvidia, Qualcomm, and Intel heavily rely on sales in China. Qualcomm is the only company with a license to sell mobile phone chips to Huawei. These factors highlight the importance of carefully navigating export controls.

The Biden administration is considering updating the rules imposed in October to limit China’s chip industry. Additionally, a new executive order restricting outbound investment is under consideration. Raimondo clarified that the goal is not to hold China back or deny them access to commodity technology. However, the administration is determined to prevent China from acquiring advanced U.S. technology for military purposes.

Raimondo emphasized the urgency of the situation, stating that the timetable for implementing these measures is as fast as possible while ensuring accuracy. Last week, Raimondo, Secretary of State Antony Blinken, National Economic Council director Lael Brainard, and National Security Council director Jake Sullivan met with Intel, Qualcomm, and Nvidia to discuss these issues.

In conclusion, the Biden administration is taking a cautious approach to target U.S. controls on exports to China. While these rules will result in revenue loss for American companies, the administration believes it is necessary to protect national security. The focus is on preventing China from accessing advanced U.S. technology for military purposes. Meetings with chip companies and government officials have taken place to address these concerns.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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