China chip crackdown: US considers tougher trade rules in China chip crackdown

The United States is facing backlash over its semiconductor crackdown on China, telling allies it is considering imposing the toughest trade restrictions if companies continue to give China access to advanced semiconductors. Semiconductor TechnologyBloomberg News reported on Tuesday. The measures include those taken by Tokyo Electron and ASML Holding NVThe report added, citing a person familiar with the discussions:

The United States: Foreign Direct Product Rulesor FDPR, the report said.

The provision, known as the Foreign Direct Product Rule (FDPR), was first introduced in 1959 to regulate trade in U.S. technology.

Essentially, it says that if a product is made using American technology, the US government has the power to block its sale, even if it is made abroad.

Bloomberg reported that the US has floated the idea to officials in Tokyo and The Hague, citing a growing possibility if the two countries do not step up measures against China.

ASML declined to comment on the talks, while Electron said it wasn’t in a position to comment on “geopolitical issues,” Bloomberg reported.

Tokyo Electron, ASML Holdings and the U.S. Department of Commerce did not immediately respond to Reuters requests for comment.