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How Trump's export curbs on semiconductors and equipment hurt the US technology sector (PIIE)

작성 2020.09.29 조회 670

How Trump's export curbs on semiconductors and equipment hurt the US technology sector

 

 

 

September 28, 2020

Chad P. Bown

 

 

President Donald Trump’s much-touted “phase one” trade agreement with China is falling well short of its goal. Under the deal, Trump pledged that China would purchase an additional $200 billion of US exports over 2020 and 2021. With two-thirds of 2020 now in the books, China has imported less than one-third of the goods that Trump assured Americans it would buy this year. One rare exception are high-tech products like American semiconductors and chipmaking equipment, which have managed to maintain robust export sales despite the pandemic and anti-China rhetoric of a US election campaign.

 

That bright spot has suddenly dimmed, however, and not because of China. The Trump administration is remaking the US export control regime in a way that could lead to sharp cuts in foreign sales of both of these American industries. Elements of the new regime may be well-motivated, seeking to mitigate legitimate national security risks. Other links to national security are, at best, more tenuous and will certainly come at considerable economic cost to American companies.

 

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