Trump to outdo Biden in China chip sanctions

Right now, we're waiting to see if the iPhone 17 series will arrive in the fall with higher price tags. The first iPhone for 2025, the iPhone 16e, landed at $600, which is a staggering increase from the $430 iPhone SE (the 16e's supposed predecessor).

It's not just tariffs, though, that the Trump administration is waving around.

The US is tightening its grip on China's semiconductor industry, with the Trump administration building on restrictions under Joe Biden. Officials are engaging with key allies, particularly Japan and the Netherlands, to impose stricter limits on semiconductor exports and maintenance services for chip-making equipment in China. The goal is to hinder China's ability to advance in artificial intelligence and military technologies by restricting access to cutting-edge semiconductor tools.

Simply put, the broad goal in Washington is to prevent China from further developing a domestic semiconductor industry that could boost its AI and military capabilities – and Trump appears to be picking up where Biden left off.

That means that smartphones and tablets made overseas also catch the flak, since our beloved mobile gadgets are animated by such chips as well.

Discussions are underway to prevent Japanese company Tokyo Electron and Dutch firm ASML from maintaining equipment in China. Washington previously imposed similar restrictions on American firms like Lam Research, KLA, and Applied Materials. The move signals a continuation of Biden-era efforts, though Trump officials appear willing to adopt even stricter measures.



One major target of the crackdown is Semiconductor Manufacturing International Corp. (SMIC), China's leading chipmaker and a key supplier to Huawei. Biden's policies had already restricted certain SMIC shipments while allowing case-by-case reviews. Trump officials worry that loopholes could still enable SMIC to acquire essential manufacturing tools, potentially aiding Huawei and China's broader tech ambitions.

Huawei itself has been a major target of US sanctions for years.

In May 2019, the US Department of Commerce placed Huawei on its Entity List, barring the company from purchasing parts and components from American suppliers without government approval. This meant that Huawei required a special license to acquire US-made components, particularly those related to 5G technology.

That's why the release of the Mate 60 Pro in 2023 caused such a stir. According to US officials, this smartphone shouldn't have been possible under the imposed restrictions. Yet, it emerged anyway, leaving Washington frustrated and scrambling for answers.