USA considers stricter trade rules for China chips
One of the measures under review is the Foreign Direct Product Rule (FDPR).
The USA is considering stricter trade regulations amidst its efforts to restrict China’s access to advanced semiconductor technology, according to a report by Bloomberg News.
In response to resistance, US officials have notified allies about potential stringent trade restrictions targeting companies that facilitate China’s technological advancements, such as Tokyo Electron and ASML Holding NV.
One of the measures under review is the Foreign Direct Product Rule (FDPR), introduced in 1959 to oversee the trade of US technologies. This provision empowers the US government to block the sale of products made using American technology, even if they are manufactured abroad.
Sources cited by Bloomberg report that US officials are in discussions with counterparts in Tokyo and The Hague, proposing this as a probable course of action if allied nations do not strengthen their own measures against China.
ASML declined to comment on these discussions, while Tokyo Electron stated it cannot comment on geopolitical matters. Requests for comment from Tokyo Electron, ASML Holding, and the US Department of Commerce were not immediately answered.
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