China warns US on chip controls

China said U.S. legislation aimed at chipmaking tools could disrupt the global semiconductor supply chain if it becomes law. (mofcom.gov.cn) The statement came from China’s Commerce Ministry on April 25, three days after the House Foreign Affairs Committee advanced the MATCH Act and other export-control bills. (mofcom.gov.cn) (foreignaffairs.house.gov) Beijing said the measures would “seriously” damage international economic and trade order, hit the stability of the global semiconductor industrial chain, and prompt China to assess the impact on its interests. (mofcom.gov.cn) The MATCH Act is a House bill introduced on April 2 by Representative Michael Baumgartner of Washington with 10 bipartisan co-sponsors. Its formal purpose is to impose export restrictions on certain semiconductor manufacturing equipment and related components. (congress.gov 1) (congress.gov 2) In plain terms, the bill focuses on the machines used to make chips, not just the chips themselves. Those tools include the production equipment and parts that fabs need to keep advanced lines running. (congress.gov) House Foreign Affairs Committee Republicans said the bill would require the Commerce and State departments to review which “chokepoint controls” the United States and its allies should apply to China. It would also require a review of which facilities in China conduct advanced semiconductor manufacturing. (foreignaffairs.house.gov) The committee’s April 22 press release cast the measure as a way to “close loopholes” that lawmakers say still let China obtain critical chipmaking tools. Chairman Brian Mast said the package was part of a larger export-control markup focused on artificial intelligence and strategic technology. (foreignaffairs.house.gov) The bipartisan push predates this week’s committee vote. On February 9, Mast and Ranking Member Gregory Meeks urged Secretaries Marco Rubio and Howard Lutnick to work more closely with allies to restrict China’s access to advanced semiconductor manufacturing equipment. (foreignaffairs.house.gov) That letter said earlier U.S. pressure had already helped keep extreme ultraviolet lithography tools out of China, and argued that gaps remain when some foreign-made equipment is controlled only for specific Chinese entities rather than countrywide. (foreignaffairs.house.gov) The bill text names a long list of Chinese companies that lawmakers say are involved in advanced-node chip efforts, including Semiconductor Manufacturing International Corporation, Yangtze Memory Technologies, ChangXin Memory Technologies, Huawei, Naura, AMEC and Shanghai Micro Electronics Equipment. (congress.gov) China’s response did not address those companies one by one. It said Beijing would closely follow the legislative process and take “necessary measures” to protect the lawful rights and interests of Chinese firms. (mofcom.gov.cn) For now, the immediate news is a warning, not a new U.S. rule. The House committee advanced the bills, but Congress.gov still lists H.R. 8170 as introduced and referred to the House Foreign Affairs Committee, not enacted. (foreignaffairs.house.gov) (congress.gov)