Biden Administration Weighs Stricter Trade Restrictions for China

The Biden administration is considering imposing severe trade restrictions on China. If companies like Tokyo Electron and ASML Holding NV continue providing advanced semiconductor technology to China, the US may implement the foreign direct product rule (FDPR). The move is aimed at curbing China's access to critical tech.

The Biden administration has informed allies that it is seriously considering employing the most severe trade restrictions available to counter China's access to advanced semiconductor technology. This comes as companies such as Tokyo Electron and ASML Holding NV continue their dealings with China, Bloomberg News reported on Tuesday.

According to sources familiar with the ongoing discussions, the United States is evaluating the potential imposition of a measure known as the foreign direct product rule (FDPR).

The FDPR would significantly impact China's ability to acquire critical technology and is seen as a strategic move to curb China's growing influence in the tech sector.

(With inputs from agencies.)