U.S. Expands October 7, 2022 Export Controls Restrictions on Advanced Computing and Semiconductor Manufacturing Items

On October 17, 2023, the U.S. Commerce Department, Bureau of Industry and Security (“BIS”) announced two new rules that will update and expand the Export Administration Regulations (“EAR”) controls aimed at restricting China’s ability to obtain advanced computing chips, develop and maintain supercomputers, and manufacture advanced semiconductors, which were first introduced on October 7, 2022 in the Implementation of Additional Export Controls: Certain Advanced Computing and Semiconductor Manufacturing Items; Supercomputer and Semiconductor End Use; Entity List Modification Interim Final Rule (the “October 7, 2022 Rule”) as summarized in our previous client alert. The new rules will take effect on November 17, 2023. BIS is seeking public comments on both rules, as well as several related issues, until December 18, 2023. Also on October 17, 2023, BIS designated two advanced computing entities in China to the Entity List, along with several of their subsidiaries, in the Entity List Additions Final Rule.