Chip stocks fall as U.S. prepares to strengthen export restrictions on China
U.S. chip stocks like Nvidia (NASDAQ:NVDA), and Advanced Micro Devices (NASDAQ:AMD), among others, are trading lower early Monday following a Bloomberg News report that the U.S. will strengthen restrictions on China's access to advanced chip technology.
The newest regulations seek to tighten restrictions previously unveiled in October. The Biden administration intends to enhance oversight of graphics chip sales for AI applications and advanced chip manufacturing equipment to Chinese companies, the report states.
Further, the U.S. will enhance scrutiny of Chinese companies trying to bypass export restrictions via third-party nations and include Chinese chip design firms in a trade restriction list. This mandates overseas manufacturers to obtain US licenses for fulfilling orders from these companies.
The revised restrictions are expected to be officially announced early this week, sources knowledgeable about the discussions said.
During a routine press briefing in Beijing on Monday, Chinese Foreign Ministry spokeswoman Mao Ning expressed her nation's opposition to what she termed «the US politicizing, instrumentalizing, and weaponizing trade and tech issues.» She further stated their commitment to closely observing these developments and resolutely defending China's rights and interests.
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