House Committee Chair Warns New Chips Rules Leave Loopholes for China to Exploit

The primary issue highlighted was the “entity-by-entity” approach taken by the United States regarding sanctions.

People look at newly launched smartphones at a Huawei flagship store after the company unveiled new products, in Beijing on Sept. 25, 2023. Kevin Frayer/Getty Images

Rep. John Moolenaar (R-Mich.), chair of the House Select Committee on the Chinese Communist Party, has warned that the latest U.S. restrictions on advanced chip technology against China leave loopholes that state-run companies could exploit.

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) on Dec. 2 imposed restrictions on 24 types of semiconductor manufacturing equipment, three types of software, and high-bandwidth memory chips and added 140 new entities to an export control list. The new restrictions, built on Washington’s 2022 controls on exporting advanced chip technology to China, are based on the knowledge that the Chinese regime, as a foreign adversary, presents a national security threat.