President Joe Biden is greenlighting South Korean and Taiwanese semiconductor makers to continue broadening their operations in China thanks to exemptions rewarded to numerous business by the administration.
Late last year, the Biden administration provided prohibitions on semiconductor chip exports to China, to name a few tech exports. The rules were developed to cut off exports of chips to China, which the communist nation is reliant on, by United States companies and multinational corporations that utilize U.S. technology.
1 year exemptions, however, were provided to some producers– consisting of Samsung, Taiwan Semiconductor, and SK Hynix– which allowed them to continue broadening semiconductor operations throughout China.
On Monday, the Wall Street Journal reported that Biden officials have verified to industry insiders that those exemptions, set to expire in a couple of months, will be extended so regarding guarantee that semiconductor manufacturers can keep growing chip production in China.
The Journal reported:
Those exemptions were set to end in October. Estevez informed a conference of the Semiconductor Industry Association, a trade group, that the exemptions would be restored for the foreseeable future, according to the attendees. The Commerce Department declined to comment. [Focus added]
…
The move to extend the exemptions, rather than winding them down, amounts to a recognition by U.S. authorities that efforts to isolate China from state-of-the-art goods are harder than prepared for in a highly integrated global market, according to market executives. It also comes as some foreign businesses bristle at Washington’s broadening interference in their operations.
[Focus included]
The extension of guideline exemptions for some international corporations comes as Biden, along with his top company officials, has actually made clear that his administration is not thinking about decoupling from China.
“We’re not aiming to decouple from China, we’re seeking to de-risk and diversify our relationship with China,” Biden said last month at the G7 Top. “That suggests taking actions to diversify our supply chains, and we’re not– so we’re not based on any one country for essential item.”
Similarly, in April, Treasury Secretary Janet Yellen said the U.S. decoupling from China would be “dreadful” and “destabilizing” for the world.
“As I’ve stated, the United States will assert ourselves when our vital interests are at stake,” Yellen stated. “However we do not seek to ‘decouple’ our economy from China’s. A complete separation of our economies would be disastrous for both countries.”
John Binder is a press reporter for Breitbart News. Email him at jbinder@breitbart.com. Follow him on Twitter here.