Washington criticises the Chinese chip business once again

The Biden administration has proposed new restrictions to prevent US government funding from benefiting the Chinese chipmaking industry. The so-called "guardrails" are intended to prevent the government's chip industry incentives from being used for "malign purposes by adversarial countries against the United States or its allies and partners." The new restrictions would prevent recipients of government funding from using the money in other nations or investing in chip plants in "foreign countries of concern." The Biden administration also plans to introduce new export restrictions to further curb China's access to US chip technology. The Department of Commerce proposed even tighter restrictions on US semiconductor technology that the administration considers to be critical to national security, such as those chips used for quantum computing and specialized military applications, as well as those employed in radiation-intensive environments.