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The US threatens sanctions on companies supplying chips to China

Juillet, 17 2024
watermark Economic news

Washington has warned allies of the possible application of the toughest trade restrictions if companies continue to provide Beijing with access to advanced microelectronics. The list of potential sanctions includes the Japanese company Tokyo Electron, which reportedly supplies chip manufacturing equipment to China. 


The United States is considering the possibility of applying the so-called Foreign direct product rule (FDPR). This measure, introduced back in 1959, allows the United States to prohibit the sale of any products made using American technology, regardless of the country of manufacture.


The United States presents this measure to officials as a likely scenario if Japan and the Netherlands, where key manufacturers of chip manufacturing equipment are located, do not strengthen restrictions on China. 


ASML, a Dutch company specializing in lithographic machines, declined to comment on the situation. Tokyo Electron said it could not comment on «geopolitical issues».


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Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.