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US Ban on Americans Aiding China Chip Firms Narrower Than Feared

  • Rules will only restrict people performing certain functions
  • China relies on US personnel and firms for tech development

Washington’s restrictions on US citizens assisting China’s chip industry will be more narrowly enforced than feared, suggesting a smaller-than-expected impact on semiconductor companies doing business in the world’s second largest economy.

The rules seem to be mostly targeting US persons working in certain functions for semiconductor manufacturing equipment firms, based on a document the Bureau of Industry and Security published last Friday to clarify export control measures announced on Oct. 7. Those sweeping sanctions were introduced to keep cutting-edge chip technologies out of reach for China’s military but have amplified uncertainty around its tech industry and wrought havoc on global chip stocks.