China’s semiconductor industry rocked by US export controls

China’s semiconductor industry has been rocked by the mass resignation of American workers after new restrictions were announced by US President Joe Biden’s administration. The export controls, which the US said was needed to “protect US national security and foreign policy interests”, restrict the ability of China to “purchase and manufacture certain high-end chips used in military applications”. The restrictions ban the export of US semiconductor equipment that cannot be provided by any foreign competitor. There’s also a licence requirement for the export of American tools or components to China-based fabrication plants. Anyone who violates the sanctions could face arrest by the US Department of Justice. The controls caused the “complete collapse” of China’s semiconductor industry overnight, according to one expert. “This is what annihilation looks like: China’s semiconductor manufacturing industry was reduced to zero overnight,” an entrepreneur who tweets under the name Lidang wrote in a thread translated by Jordan Schneider, a senior analyst at Rhodium Group. “Lots of people don’t know what happened yesterday,” Lidang explained. “To put it simply, Biden has forced all Americans working in China to pick between quitting their jobs and losing American citizenship. “Every American executive and engineer working in China’s semiconductor manufacturing industry resigned yesterday, paralysing Chinese manufacturing overnight. “One round of sanctions from Biden did more damage than all four years of performative sanctioning under [former US president Donald] Trump.” https://www.news.com.au/finance/economy/world-economy/chinas-semiconductor-industry-rocked-by-us-export-controls/news-story/a5b46fb3cfd2651be23a549c38b3e2d6