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US chip export restrictions upset China's semiconductor industry

Beijing (The Hawk): The enormous exodus of American workers following the introduction of new restrictions by US President Joe Biden's administration has rocked China's semiconductor industry.

According to news.com.au, the export restrictions prevent China from "purchasing and manufacturing certain high-end chips used in military applications," which the US stated was required to "defend US national security and foreign policy objectives."

According to the study, the export of US semiconductor equipment that no foreign competitor can provide is prohibited by the limitations.

Additionally, it said that a licence was necessary for the export of American tools or components to factories located in China.

And most importantly, before offering assistance to Chinese plants, any individual or organisation of the US must first obtain approval from the US Department of Commerce.

The Department of Justice may arrest anyone who disobeys the restrictions.

According to the report, one expert claimed that the controls were to blame for the "total collapse" of China's semiconductor industry over night.

(Inputs from Agencies)

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