US Embargo On China Steams Up As It Looks To Extend Restrictions To Quantum Computing, Biotech and AI

  • Weeks after enacting the strictest curbs yet on technology exports to China, the U.S. official overseeing the measures suggested they could soon get more challenging as they seek support from allies and explore restrictions on other types of technology.
  • Alan Estevez, Commerce Department undersecretary for industry and security, remarked as the U.S. and other Western semiconductor companies suspend lucrative trade with China, often their biggest export market, the Washington Post reported.
  • The new restrictions aimed to deprive Beijing of computer chips for its military.
  • Also Read: Chinese Top Chipmaker Retaliates By Firing US Employees In Core Tech, Former CEO’s Position Remain Undecided
  • Estevez said at a briefing at the Center for a New American Security that the Biden administration is “not done” considering other technology exports to regulate.
  • Areas “on my radar” for possible additional export controls, Estevez said, include quantum computing, biotechnology, and artificial intelligence.
  • The restrictions caused a significant hit to U.S. tech companies, losing out on China, their large export market.
  • KLA Corp KLAC said the restrictions could deprive it of $600 million - $900 million in sales next year, equal to as much as 10% of its revenue in its fiscal year that ended in June
  • Dutch company ASML Holding N.V. ASML told its U.S. employees to stop installing or servicing equipment at any Chinese chip factory while it sorts through the new rules. 
  • Applied Materials, Inc AMAT said the export restrictions would prevent it from completing sales of roughly $400 million in the fourth quarter.
  • Price Action: KLAC shares traded higher by 2.83% at $317.67 on the last check Friday.
  • Photo by mohamed hassan via Pxhere
Market News and Data brought to you by Benzinga APIs
Posted In: GovernmentNewsRegulationsTechMediaBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!