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US considers tougher trade rules in China chip crackdown, Bloomberg News reports
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US considers tougher trade rules in China chip crackdown, Bloomberg News reports
Jul 16, 2024 9:47 PM

July 16 (Reuters) - The U.S., facing pushback to its

chip crackdown on China, has told its allies it is considering

using the most severe trade restrictions available if companies

continue giving the country access to advanced semiconductor

technology, Bloomberg News reported on Tuesday.

These measures would be applied to companies such as Tokyo

Electron ( TOELF ) and ASML Holding NV, the report

added, citing people familiar with the discussions.

The U.S. is weighing whether to impose a measure called the

foreign direct product rule, or FDPR, the report said.

The provision, called the Foreign Direct Product Rule, or

FDPR, was first introduced in 1959 to control trading of U.S.

technologies.

It essentially says that if a product was made using

American technology, the U.S. government has the power to stop

it from being sold - including products made in a foreign

country.

The U.S. is presenting the idea to officials in Tokyo and

the Hague as an increasingly likely outcome if the countries

don't tighten their own China measures, the Bloomberg report

added.

ASML declined to comment on the discussions, and Electron

said it wasn't in a position to comment on "geopolitical

issues", Bloomberg reported.

Tokyo Electron ( TOELF ), ASML Holding, and the U.S. Department of

Commerce did not immediately respond to Reuters' requests for

comment.

(Reporting by Surbhi Misra in Bengaluru; Editing by Janane

Venkatraman and Rashmi Aich

)

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