The Biden administration is contemplating new restrictions on semiconductor equipment sales to China. These potential rules aim to curb China's tech ambitions but avoid extremely punitive measures.
The proposal highlights a shift in approach: instead of sanctioning six Huawei suppliers, the U.S. plans to add only selected companies, notably leaving out ChangXin Memory Technologies.
Intense lobbying from U.S. chip manufacturers indicates a balancing act: tougher measures could harm American businesses, leading to a reconsideration of how severe the restrictions should be.
The stock market response reflects investor sentiment, with significant gains seen in Japanese chip companies, suggesting confidence in the potential economic dynamics following these U.S. measures.
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