US Considers Tougher Trade Rules in China Chip Crackdown

The United States is considering imposing stronger trade restrictions on China's access to breakthrough semiconductor technology. Companies such as Tokyo Electron and ASML Holding NV may be affected by these regulations. The United States is considering the implementation of the Foreign Direct Product Rule (FDPR) to regulate the trading of US technologies.

Credit: REUTERS

According to Bloomberg News, the US has notified its allies that it is considering imposing the most severe trade sanctions possible if corporations continue to supply China with access to such technology.

The study specifically identifies Tokyo Electron and ASML Holding NV as prospective candidates for these actions. According to sources familiar with the discussions, the US is considering introducing the Foreign Direct Product Rule (FDPR) to limit trade of US technologies.

The FDPR, which was first implemented in 1959, gives the US government the ability to prohibit the sale of products developed with American technology, even if they are manufactured in another country. This clause has been proposed to officials in Tokyo and The Hague as a possible conclusion if these nations fail to tighten their own actions against China.

When asked for a commentary on the conversations, ASML declined, while Tokyo Electron indicated that company was unable to comment on "geopolitical issues," as Bloomberg reported.

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• The US is considering tougher trade restrictions on China's access to advanced semiconductor technology.

• Companies like Tokyo Electron and ASML Holding NV could be affected by these measures.

• The US is evaluating the implementation of the Foreign Direct Product Rule (FDPR) to control the trading of US technologies.

Source: REUTERS