Understanding U.S. Allies’ Export Control Strategies for AI and Semiconductors
Since October 2022, the United States has made significant strides in restricting China’s access to advanced technologies, notably artificial intelligence (AI) and semiconductors. The Department of Commerce has updated export control regulations multiple times, including crucial additions to the Entity List and restrictions on various tech sectors.
On December 2, 2024, two pivotal rules were released, adding 140 companies to the Entity List and broadening the Foreign Direct Product Rule (FDPR). Further developments in this domain continued into January 2025, highlighting the United States’ commitment to stifling China’s technological advances.
As U.S. Secretary of Commerce Gina Raimondo stated, ‘America leads the world in artificial intelligence. We’re not letting China catch up.’
The ongoing export controls underscore the importance of cooperation with allied nations such as the Netherlands, Germany, and South Korea, who control vital segments of the semiconductor supply chain. While unilateral actions by the U.S. can significantly impact exports, collaboration with allies is essential to enforce effective measures.
The Current Landscape of Export Controls
U.S. allies currently lack equivalent legal frameworks compared to the U.S. export control authorities like the FDPR and Entity List. However, many possess the capabilities to enforce some restrictions on advanced semiconductor technologies outside multilateral controls. The effective implementation relies not just on regulatory authority but also on the willingness and capacity of allied nations.
The paper highlights the differences in export controls among key actors including the EU and Taiwan, showing that while they may not mirror U.S. authorities, they can still exert some level of control on tech exports.
Implications for U.S. and Allied Technology Competition with China
The findings call for enhanced communication between the U.S. and its allies to synchronize efforts and maximize the effectiveness of export controls against China. With China advancing in AI and semiconductor technologies, the need for collaborative strategies has never been greater.
This analysis illuminates the necessity for a unified approach, emphasizing that the future of technology competition will depend significantly on the ability of the U.S. and its partners to act cohesively in export regulation efforts.
