*

US needs better tracking of Chinese tech, says Senator

Warner

*

SMIC produced advanced chips despite US restrictions

*

Warner urges US investors to push China to allow TikTok

sale

By David Shepardson

WASHINGTON, June 18 (Reuters) - The chair of the Senate

Intelligence Committee said on Tuesday that U.S. intelligence

agencies need to do a better job in tracking Chinese advanced

technology and other efforts across a variety of fields.

"Our intel community is so used to traditionally spying -

you spy on the military, you spy on the government. You don't

necessarily follow all of the tech companies," Senator Mark

Warner told reporters at a breakfast sponsored by the Christian

Science Monitor. "You don't follow where China is getting

extraction of rare earth minerals. We just need to kind of

continue to up our game in following what China is doing, not

just in this chip space but frankly in a lot of these other

domains."

Warner said the intel side had "missed a couple times," citing

Semiconductor Manufacturing International Corp's

ability to produce advanced 7- nanometer semiconductor chips and

other issues involving chipmaking tool manufacturers. He also

expressed concerns about China's advanced efforts on life

sciences and biotechnology.

"We've seen no indication that China is not pedal-to-the

metal in terms of investing and trying to not just be successful

but dominate," Warner added.

Reuters reported in February that the Biden administration

had cut off SMIC's most advanced factory from more American

imports after it produced a sophisticated chip for Huawei's Mate

60 Pro phone.

Warner said the United States needs to do more on limiting

chips and chipmaking tools to China.

"Unfortunately, there may be Western chip manufacturers who

are knowingly or unknowingly still having their tools and

products circumventing the ban," Warner said.

Warner said he wished the U.S. investors in China-based

ByteDance, parent of TikTok, would try "to urge China to go

ahead and at least break off the non-Chinese portion" of the

popular short video app used by 170 million Americans. U.S.

investors own roughly 40% of ByteDance. Warner said he is not

sure that China will allow a sale of TikTok.

TikTok did not immediately respond to a request for comment.

The U.S. Congress passed legislation in April requiring

ByteDance to divest TikTok's U.S. assets by Jan. 19 of next year

or face a ban. TikTok and ByteDance have sued to block the

legislation. Warner, who opposes a ban, added: "But at the end

of the day, the law is the law."