US Considers Broad Software Curbs on China, White House Says
The Trump administration is weighing export restrictions against China that would bar the purchase of a wide swath of critical software, a White House official said Wednesday.
The acknowledgment, given on the condition of anonymity to detail internal deliberations, came after Reuters reported that the US was weighing efforts similar to the curbs implemented against Russia following the invasion of Ukraine if China did not backtrack from its threat to restrict rare-earth exports.
The report did not detail specific curbs or a definitive timeline for the new measures to be announced, but the US implemented export controls on enterprise resource planning, customer relationship management and computer-aided design software against Russia in recent years.
It’s not clear how serious the effort is. Any sweeping technology restrictions on China could disrupt a fragile US economy already absorbing the impact of President Donald Trump’s tariffs.
Both Beijing and Washington have adopted a pattern of floating punishing trade measures ahead of negotiations, providing leverage and bargaining chips for talks aimed at reducing barriers between the world’s largest economies.
Earlier this month, Trump said he would impose an additional 100% tariff on China as well as export controls on “any and all critical software” beginning at the start of next month.
The US has said the move is in retaliation for China’s announced restrictions on the flow of critical rare-earth minerals needed to make numerous consumer products — including motors, semiconductors and fighter jets — as well as new port fees on US ships.
But Trump has also predicted that talks planned for next week with Chinese President Xi Jinping would produce a “good deal” on trade.
“I have a great relationship with President Xi. I expect to be able to make a good deal with him,” Trump said Tuesday during a lunch with Republican lawmakers in the White House Rose Garden. “I want him to make a good deal for China — but it’s got to be fair.”
Trump also threatened different retaliation earlier this week against Beijing if the two sides were unable to broker a deal.
“They can’t get parts for their airplanes. We build their airplanes,” Trump said in a meeting with Australian Prime Minister Anthony Albanese at the White House.
Source : Bloomberg.com
