China Dodges US Export Controls, Buys $38 Billion In Chipmaking Equipment, Congress Report Says

Group 1 - China purchased approximately $38 billion worth of advanced chipmaking equipment from the U.S. and its allies in the previous year, marking a 66% increase from 2022 [1][3] - The report highlights that inconsistencies in export rules among the U.S., Japan, and the Netherlands allowed non-U.S. equipment manufacturers to sell to certain Chinese firms, which U.S. companies were restricted from doing [2] - China accounted for nearly 39% of the total sales of major semiconductor equipment suppliers, including Applied Materials, ASML, Lam Research, KLA, and Tokyo Electron, with significant revenue coming from state-owned enterprises [4] Group 2 - U.S. lawmakers are advocating for broader bans on chipmaking equipment sales to China, rather than targeting specific Chinese companies, emphasizing the need for tighter enforcement and support for U.S. and allied firms [5] - The report underscores the U.S. efforts to limit China's capacity to produce advanced chips, which are crucial for technologies such as artificial intelligence and military systems, asserting that meaningful restrictions are necessary across the entire semiconductor production chain [6]