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Home Risk & Resilience Geopolitics

US-China Chip Export Ban Hits Hua Hong, Lam Research, Applied Materials

2026/05/03
in Geopolitics, Risk & Resilience, Trade & Tariffs
0 0
US-China Chip Export Ban Hits Hua Hong, Lam Research, Applied Materials

According to www.china-briefing.com, the US Department of Commerce has ordered multiple US chipmakers to halt exports of certain semiconductor manufacturing tools to Hua Hong Semiconductor and its subsidiary Huali Microelectronics — a move that directly impacts global semiconductor supply chain operations.

Escalating Semiconductor Restrictions

As reported by Reuters and cited in the source, letters ordering the shipment halt were sent last week to US equipment makers including Lam Research, Applied Materials, and KLA. This action follows earlier US export controls targeting China’s chip design capabilities: in May 2025, the Department of Commerce directed electronic design automation (EDA) firms — Cadence, Synopsys, and Siemens EDA — to stop providing key software and materials needed for chip design and production in China.

The US has maintained a sustained effort to restrict China’s access to advanced semiconductors and related equipment since the Biden administration, and the Trump 2.0 era has intensified enforcement. Notably, while the US approved sales of less powerful chips — such as Nvidia’s H200 and AMD’s MI325X GPUs — in January 2026, those approvals came with strict conditions imposed by the Bureau of Industry and Security (BIS) to ensure China’s advanced computing capabilities “do not exceed the capabilities or supply capacity of the United States”, according to the Federal Register notice.

Tariff Landscape for Chinese Autos Remains Firm

On April 28, 2026, over 70 Democratic Members of Congress urged President Trump to maintain existing trade barriers on Chinese-made vehicles entering the US market. The letter warned that lowering barriers would pose “a direct threat to American manufacturing, workers, and national security” and called for measures to prevent circumvention via the USMCA.

The US already enforces multiple tariffs on Chinese automotive imports: a 25 percent Section 301 tariff on vehicles and components (in place since 2018), a 100 percent tariff on Chinese-made electric vehicles (EVs), and a 25 percent tariff on Chinese EV batteries (both effective since 2024). As a result, China exports a negligible number of vehicles and vehicle components to the US.

Agricultural Trade: Commitments Expand Amid Diplomatic Engagement

In a congressional hearing on April 22, 2026, US Trade Ambassador Jamieson Greer stated the US will seek additional agricultural purchase commitments from China during Trump’s planned mid-May visit. He noted efforts to “establish a mechanism with China to facilitate expanded trade in non-sensitive goods, which would include, of course, agriculture”.

China has already committed to purchasing 25 million metric tons of soybeans annually from the US in 2026, 2027, and 2028. It also fulfilled an initial commitment of 12 million metric tons by the end of the growing season — originally scheduled for the end of 2025 but delayed. Following a February call with President Xi Jinping, Trump claimed China was considering adding eight million tons in shipments during the current season; however, this remains unconfirmed.

Data from the US Department of Agriculture shows a dramatic surge in US sorghum exports to China: value reached US$260.2 million in the first two months of 2026 — an increase of over 1000 percent from the same period in 2025. The White House Fact Sheet on the November 1 preliminary trade deal confirmed China would resume purchases of other US agricultural goods, including sorghum and hardwood.

New Chinese Supply Chain Security Regulations Take Effect

On April 7, 2026, China’s State Council released new regulations on supply chain security, expanding government authority to investigate and impose countermeasures on foreign entities deemed to threaten China’s industrial supply chains. Under the rules, any organization or individual conducting investigations or collecting information related to industrial and supply chains within China’s territory in violation of Chinese laws and regulations may be subject to scrutiny and sanctions.

This regulatory development arrives amid heightened bilateral scrutiny and signals Beijing’s formalization of supply chain risk governance — a direct response to escalating US export controls and reflects a broader trend among major economies to codify industrial resilience mechanisms.

Source: www.china-briefing.com

Compiled from international media by the SCI.AI editorial team.

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