US Representative Mike Gallagher, chair of the House of Representatives committee on China, is expressing growing concerns about US investments in the Chinese chip industry. To address such concerns, Rep. Gallagher is scheduled to meet with the Semiconductor Industry Association to discuss tightening US rules on exporting chips to China, as well as reducing the number of semiconductor manufacturing machines sent to China.
In a statement, Rep. Gallagher said, “I believe that U.S. rules enacted last October that cut off the sale of advanced artificial intelligence chips to China should be tightened to cover less advanced chips.” He also warned that “A massive Chinese effort to build up the capacity to build less advanced chips used in automobiles, washing machines and other everyday products could one day result in China dumping those chips on the U.S. market and drive U.S. makers of such chips out of business.”
Rep. Gallagher’s stance has drawn both praise and criticism from a variety of sectors. While some argue the effort is a necessary step to protect U.S. investments and production, others view the action as an overly aggressive attempt to hamstring Chinese production and competition.
The committee chair’s meeting with the Semiconductor Industry Association comes at a time of heightened tensions between the U.S. and China on a variety of fronts. The discussion Rep. Gallagher has planned may be the first of many in an effort to protect the U.S.’s investments in the chip industry while still being mindful of the potential for economic damage on an international level.