Biden’s new export curbs place many Chinese Americans at risk of losing their jobs or their citizenships

New export controls recently ordered by the Biden administration have put hundreds of Chinese Americans at risk of losing either their jobs or their citizenship.

On Oct. 7, the US government released a series of restrictions essentially banning the export to China of American-made manufacturing equipment needed to produce advanced chips.

The White House said the initiative aims to thwart China’s capabilities in manufacturing high-end semiconductors used in commercial and military technologies.

However, a term in the restriction also extends to persons and not only to organizations or companies.

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Based on New rulesBoth US citizens and permanent residents may be banned from supporting the “development or production” of advanced chips in Chinese factories without a license.

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This means hundreds of US-citizen executives and professionals in China’s tech industry now find themselves in potentially vulnerable positions if their former customers and suppliers begin to dwindle due to the restrictions. For some, this could mean a choice to give up either their citizenship or their profession.

Semiconductor manufacturer ASML, which has US offices and many US employees, immediately ordered its US employees to freeze their interactions with Chinese customers.

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“ASML US employees are required to refrain, directly or indirectly, from servicing, shipping or providing support to customers in China until further notice while ASML actively reviews which specific factories are impacted by this restriction,” das shared Company recently sent an internal letter to employees.

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The order applies to all US citizens, green card holders and foreigners residing in the US

“There are green card holders who are considered ‘US persons’ who will get in trouble. Do they want to stay in China and give up their US person status, or do they want to relocate?” Martijn Rasser, senior fellow at the Center for a New American Security, told the Washington Post.

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Some observers also warned that these restrictions could go further hurt US manufacturers should China flood the market with cheaper low-end chips in the long term.

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A Commerce Department official told the Washington Post that they are already monitoring the potential market surge so they can make the necessary adjustments as soon as adverse effects materialize.

“It’s just something we’re continuing to monitor and if there are unintended consequences, we’ll figure out what adjustments are appropriate,” the anonymous source said.

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The official pointed out that the restrictions are “not aimed at destroying everything,” just “achieving China’s ability to produce chips at a defined level.”

In August, Biden signed the Chips and Science Billa $280 billion measure aimed at boosting US technological competitiveness vis-à-vis China.

Featured image above Republica


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