US allies warn of 'diplomatic crisis' as American officials demand new curbs in China chip battle

Japan and the Netherlands are strongly resisting US demands to further limit their companies' tech exports to China, the world's largest semiconductor and electronics market.

The Biden Administration is threatening to invoke an obscure 70-year-old US law, the Foreign Direct Product Rule. This regulation authorizes the American government to impose controls and trading restrictions on any foreign-made products that use even the tiniest amount of technology or components from American sources.

Resources and links:

Bloomberg, Tokyo Electron Leads Japan Tech Selloff on China Chip Curb Fears

Bloomberg, ASML Falls as Outlook Clouded by Risk of More US Export Curbs

Bloomberg, US Floats Tougher Trade Rules to Rein In China Chip Industry

Foreign Direct Product Rules

[adamme]

This is just another act of desperation!

[mhguommjt]

Stop using Amerikkkan parts. U$ is a Idiocracy.

[miguelbemquererful]

Allies will soon decouple but not from China, from the US

[williamlangley]

Time for these companies to stop sourcing components made in the USA

[justme]

US allies need to declare Independence.

[bobjack]

As of now China knows how to make chips, China doesn't need ASML or TSMC China is self sufficiency.

[daniellee]

America to sanction any country who uses dollars😂😂

[HughJass-jvlt]

U.S. fast-tracking itself to *IRRELEVANCE* 😂😂

[miltonthegreat]

RIP Howard Zinn. You would have told us that it doesn't matter whether it is Democrat or Republican, it always ends up the same: American Exceptionalism and Imperialism to serve the wealthy. America can do better.

[davidlee]

So "Rules Based International Order" means American rules and American orders?

[justme]

even without biden, china policy will be the same no matter who is office. us allies need to think hard!

[mmaximk]

I cannot praise this channel highly enough for its consistent quality. With gratitude and appreciation.

[fastflame]

ASML should pull out of the USA and ban new equipment being used there.

[frankm]

When we talk about American allies, there is no more such a thing of “national sovereignty.

[catinbootsnow]

The so called "rule based international order"...😂

[raymondtay]

Looks like the US is getting crazier and crazier - "those whom the gods want to destroy, they first make mad"

[peterchin]

The US doesn't care if their policy is detrimental to its allies' companies. I often ask myself why those allies are so naive.

[onetwothreefour-sn]

I feel bad for the US allies getting bossed around.

[_Negra_Arroyo_Lane]

They just need to stop using US components.

[silversurfer]

So strange how all the efforts are made to contain the PRC, when there are burning issues in the USA like homelessness, drug addiction and crumbling infrastructure that are ignored.