China is pushing back as the U.S. Congress advances export-control bills targeting China's semiconductor industry, including legislation to strengthen U.S. export controls on semiconductor equipment to China in coordination with allies. The stated reason is that it would harm the international trade order and hit the stability of global supply chains.
China's Ministry of Commerce said on the 25th that it is watching the situation after the U.S. House Foreign Affairs Committee recently passed several export-control bills, including the Multilateral Alignment of Technology Controls on Hardware Act (MATCH), and announced this position.
The ministry said, "If the relevant bills are ultimately promulgated, they will seriously undermine the international economic and trade order and deliver a severe shock to the stability of the global semiconductor industry chain and supply chain."
It added, "China is closely monitoring the progress of the relevant legislation, carefully assessing its impact on China's interests, and will resolutely take necessary measures to firmly safeguard the legitimate rights and interests of Chinese corporations."
According to Bloomberg and Reuters, the U.S. House Foreign Affairs Committee passed on the 22nd (local time) bills to tighten export controls to China on advanced technologies such as semiconductors and semiconductor equipment.
Among them, the MATCH Act requires the administration to identify advanced semiconductor equipment that should be subject to export controls to countries of concern such as China and related facilities in those countries. The bill also includes a provision that the administration should make diplomatic efforts to have allies adopt export controls similar to those of the United States through their own laws.
The goal of the bill is to extend U.S. restrictions on exports of semiconductor manufacturing equipment to allies so that China cannot procure the equipment and parts needed for advanced semiconductor manufacturing from countries other than the United States, such as the Netherlands or Japan.
In addition to the MATCH Act, a bill that would strengthen civil penalties for export-control violations and introduce a program providing incentives to whistleblowers also cleared the committee.
Bloomberg said, "The 20 bipartisan bills passed this time are the most significant legislative attempt to revamp U.S. export-control policy since 2018," adding, "The bills, including the MATCH Act, reflect lawmakers' frustration that the administration is not taking action regarding restrictions on exports in sensitive areas."