The Biden administration is attempting to precisely target U.S. export restrictions to China, but regulations may cost businesses some income, according to Gina Raimondo, the secretary of commerce, on Wednesday.

At a seminar, Raimondo stated that restrictions shouldn’t be so onerous that they “deny American companies revenue and China can get the product elsewhere, or China can get the product from other countries.” We believe the rules are worth it even though they “will deny some revenue to American companies.”

Top Biden administration officials, including Raimondo, met with executives from U.S. chip companies last week to discuss China policy as the most influential semiconductor lobby organisation sought a halt to additional limitations being considered.

The government is talking with businesses, according to Raimondo, “to get to the right place so we don’t damage American business but quite frankly protect American national security.”

According to the Semiconductor Industry Association, China accounted for $180 billion in semiconductor purchases last year, about a third of the $574.1 billion global total and the largest single market.

Crucial sales depend on China for Nvidia, Qualcomm, and Intel. Only Qualcomm is authorised by American officials to provide Huawei with mobile phone chips.

The Biden administration is thinking about revising a broad set of regulations put in place in October to hamper China’s chip industry and is also exploring a new executive order that would limit some outbound investment.

“This isn’t about holding China back or denying them commodity technology,” Raimondo said. China wants access to the United States most sophisticated technology “to advance their military and we’re not going to allow that,” she said.

The “timetable is as fast as we can and make sure it is correct,” she added.

A person with knowledge of the discussions claims that Raimondo, Secretary of State Antony Blinken, Director of the National Economic Council Lael Brainard, Director of the National Security Council Jake Sullivan, and other government officials met with Intel, Qualcomm, and Nvidia last week.

(Adapted from ThePrint.in)

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