US Secretary of Commerce releases plans to dam American corporations and residents from making chips for China

US Commerce Secretary Gina Raimondo reinforced the Biden administration’s controversial plan to ban US companies and citizens from helping China make advanced semiconductor chips, saying, “We must protect the American people from China.” Point. Point.”

“China has become more aggressive in its so-called military-civilian fusion strategy, which is essentially fancy talk for buying our advanced chips ostensibly for commercial purposes,” Raimondo said in an interview with CNBC’s Jim Cramer on Thursday. However, China uses these chips in military equipment that US officials fear could be used against America, she said. “This is the most strategic and bravest step we have ever taken to say no, we will not accept that.”

In October, the Biden administration imposed export restrictions on semiconductors made by US companies in China. The government has also urged US allies to enact similar restrictions. “I think you will see other countries follow us,” she said.

US chipmakers must obtain a license from the Department of Commerce to export certain chips that can be used in modern weapons systems. The trade also enacted licensing restrictions that prevented US citizens from working for China’s chip-making industry, jeopardizing their US citizenship.

Raimondo says the new rule is “necessary” even though some US companies will be denied some revenue.

The Commerce Secretary added that the regulations are not designed to penalize US companies.

“It’s purposeful. We didn’t do that on day one. We worked on it for a year. It’s powerful, but it also aims to do national security work and not punish US companies,” Raimondo said.

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