The United States government has reportedly tightened the rules that control exports of U.S. technology to Chinese companies for use in commercial and military purposes.
Citing unnamed sources, Reuters reports that the measures agreed to by senior U.S. officials in a meeting last Wednesday would introduce hurdles that could be used to stop Chinese companies from buying certain optical materials, radar equipment and semiconductors, among other things, from the United States.
One change would do away with the civilian or “civ” exemption, which allows for the export of certain U.S. technology without a license, if it is for a non-military entity and use. The exception eases the export of items like field programmable gate array integrated circuits, would be eliminated for Chinese importers and Chinese nationals.
FPGA circuits are made by several companies, including Intel and Xilinx.
Senior officials in the Trump administration also reportedly agreed to new measures to restrict the global supply of chips to China’s Huawei Technologies.
China president Xi Jinping aims to build up its military might and super-charged technological development in tandem, a policy that makes the U.S. officials nervous.
Industry fears the new rules, which include withdrawing license exceptions, could drive Chinese consumers into the arms of foreign rivals.