As part of these measures, the U.S. has added 140 companies to its Entity List, restricting their access to essential technology and materials crucial for semiconductor production.

Moreover, some experts contend that the rationale for targeting advanced semiconductors for military applications is flawed, as most military technologies do not actually require the most advanced chips, which are mainly used in consumer products.

The impact of these controls on U.S. technology companies, particularly regarding future research and development spending and revenue, remains uncertain but is anticipated to be negative.

In response, China is likely to retaliate against these controls, which could pressure U.S. allies and complicate international supply chains for critical components.

Commerce Secretary Gina Raimondo has emphasized that the Biden administration is taking a tough stance on China regarding military modernization through these export controls.

Looking ahead, the incoming Trump administration will face significant challenges in reassessing these export controls and determining their long-term effects on U.S. technology leadership and relations with China.

On December 2, 2024, the Biden administration implemented significant export controls aimed at curtailing China's semiconductor manufacturing capabilities, particularly targeting major players like Semiconductor Manufacturing International Corp. (SMIC) and Huawei.

These new controls establish a multi-tiered system designed to address gaps in previous regulations, primarily focusing on advanced-node semiconductor production, defined as 16/14 nanometers or less.

The overarching goal of the export controls is to prevent China from developing a self-sufficient semiconductor supply chain for advanced applications, which are vital for smartphones and AI technologies.

However, these export controls are expected to further strain U.S.-China relations and disrupt global semiconductor and critical mineral supply chains.

Critics of the Biden administration's unilateral approach argue that it disadvantages U.S. firms, as international partners may not align with these restrictions, compelling companies to consider removing U.S. technology from their supply chains.