BEIJING — China issued a stark warning on Saturday that proposed U.S. export-control legislation aimed at semiconductors poses a serious risk to global chip supply chains. The warning came shortly after the House Foreign Affairs Committee advanced the Multilateral Alignment of Technology Controls on Hardware (MATCH) Act and several related measures in a vote on April 22.
In a statement, China’s Commerce Ministry criticized what it described as an overreach of national security concerns and a misuse of export controls. The ministry warned that the proposed bills would disrupt the global economic and trade order and threaten the stability of the semiconductor supply chain. Beijing added it is closely monitoring the legislation as it moves through Congress and will take “necessary measures” to protect Chinese companies.
The MATCH Act, which targets certain semiconductor manufacturing equipment and components, represents a shift in the U.S. approach to chip export controls from agency regulations to congressional action. The bill would impose export restrictions on critical machines and parts used in advanced chip production, aiming to limit China’s access to key technologies. The legislation also includes provisions to restrict foreign toolmakers serving Chinese fabs, addressing a vulnerability in current controls that allows Chinese chipmakers to turn to overseas suppliers for equipment or service.
Micron Technology, the largest U.S. memory chip maker, is leading the push for tighter restrictions, according to sources cited by Reuters. The draft measure specifically targets facilities run by ChangXin Memory Technologies, Yangtze Memory Technologies, and Semiconductor Manufacturing International Corp (SMIC), three major Chinese chip manufacturers at the heart of Beijing’s drive to boost domestic production.
The updated bill takes a narrower approach than its predecessor but retains a nationwide ban on ASML’s deep ultraviolet (DUV) immersion lithography systems, which are essential for printing circuit layouts onto wafers during chip production. The legislation also outlines license requirements for servicing machinery at certain Chinese sites. ASML, the Dutch lithography equipment giant, finds itself caught in the middle of the standoff. CFO Roger Dassen told reporters this week that it is too soon to predict the impact of the proposed U.S. legislation but noted that “the need for capacity remains.”
Analysts at the Center for a New American Security (CNAS) argued in a recent note that the tools themselves, not just the chips, could lock in export controls for the long haul. “The machines that make them matter more,” wrote Janet Egan and Michelle Nie. However, they cautioned that getting allies on the same page is difficult, as no country wants to be the first to lose access to China’s vast market.
Pressure is mounting on the Bureau of Industry and Security (BIS), the Commerce Department arm responsible for export controls. Kate Koren, a former BIS official now at the Center for Strategic and International Studies (CSIS), told Reuters there is a “pretty strong bipartisan consensus” that the bureau has not been performing adequately over the past year.
The MATCH Act still faces a long road to becoming law. After clearing the committee, it must pass the full House and Senate, with lawmakers likely to debate which products and companies are covered, as well as potential pushback from allies and chipmakers. If the rules are too broad, they could cut into toolmakers’ China revenues and potentially drive chip manufacturing abroad. If too narrow, critics warn, China might find ways to bypass the restrictions.
Beijing’s latest move escalates an already complex tech dispute. In Washington, officials frame the measures as a matter of national security and artificial intelligence. China argues the bills undermine trade rules and supply chains. The key question now is whether Congress will lock these efforts into law.
