US lawmakers say China ‘used’ gaps in chip export rules allowed China to buy $38 billion worth chipmaking tools

A US congressional report reveals that gaps in export restrictions allowed China to acquire nearly $40 billion in advanced chipmaking equipment, undermining efforts to curb its capabilities. Misaligned rules among the US, Japan, and Netherlands enabled non-American firms to sell to China what US companies couldn’t. This surge in sales significantly boosted China’s semiconductor manufacturing competitiveness, raising global concerns.