Bipartisan Pressure Mounts on Biden Administration Over China's Chip Industry

A top Republican lawmaker criticizes the Biden administration for insufficient action against China's SMIC. Michael McCaul accuses SMIC of violating U.S. export laws by reportedly aiding Huawei's chip-making initiatives, potentially threatening U.S. technological dominance. The Commerce Department acknowledges receipt and plans to respond appropriately.

A leading Republican figure has accused the Biden administration of failing to adequately impede China's Semiconductor Manufacturing International Corp (SMIC) from bolstering the country's chipmaking industry and military capabilities.

House Foreign Affairs Committee Chair Michael McCaul has called on U.S. Commerce Department officials to inspect SMIC's facilities. The aim is to determine whether SMIC is illicitly producing chips for Huawei, reportedly exploiting loopholes in U.S. export controls. McCaul's letter, dated November 4, outlines increasing bipartisan dissatisfaction that the Commerce Department's Bureau of Industry and Security (BIS) has not acted upon intelligence regarding Huawei's efforts to circumvent restrictions.

McCaul suggests that without China's consent to a comprehensive audit of SMIC, the BIS should suspend existing licenses for the company. The letter identifies SMIC's advancements, such as an advanced chip in a Huawei smartphone and projected production of AI processors, as clear violations. The Commerce Department has acknowledged the letter and intends to respond, while the Chinese embassy labeled such actions as excessive politicization of trade matters.

(With inputs from agencies.)