A bipartisan investigation reveals that gaps in restrictions on China’s chip-making gear allowed Chinese firms to purchase nearly $40 billion in equipment, a 66% increase from 2022. U.S. efforts to limit China’s chipmaking ability, crucial for national security, have been inconsistent, leading to calls for broader bans on chipmaking tool sales to China.

The U.S. is targeting China’s advanced chip manufacturing capabilities due to national security concerns, as state-of-the-art chips are vital for AI and military modernization. China’s increasing competitiveness in semiconductor manufacturing has implications for human rights globally, prompting calls for coordinated action between the U.S. and its allies.

Tokyo Electron’s U.S. president notes a decline in industry sales to China this year, partly due to new regulations. However, achieving desired outcomes from a U.S. perspective remains a challenge. Some key toolmakers did not comment on the report, but the committee highlighted security concerns with Chinese firms SwaySure Technology Co, Shenzhen Pengxinxu Technology Co, and SiEn Integrated Circuits Co.

Read more at Yahoo Finance: China’s chipmakers bought $38 billion in U.S. and allied tools, a sign policy is failing, lawmakers find