Commerce Imposes Sweeping Semiconductor Export Controls On China And Changes To Unverified List Enforcement Policy

October 12, 2022 - On October 7, 2022, the U.S. Department of Commerce's ("Commerce") Bureau of Industry and Security ("BIS") made available for public inspection two significant new export control rules, both aimed at controlling the flow of technology to China. These new rules are the most restrictive U.S. export control measures against Chinese entities since the foreign direct product ("FDP") rule targeting Huawei, and significantly impact a broad range of Chinese technology companies, especially the semiconductor and artificial intelligence industries, as well as their business partners and suppliers across the globe.

The first, an interim final rule, introduces a set of new controls governing the export of certain advanced computing and semiconductor manufacturing items to China and related activities (the "Semiconductor and FDP Rule"). The Semiconductor and FDP Rule will be published in the Federal Register on October 13, 2022, but certain of its provisions