China Tightens Export Controls, Hinders US Tech Giants’ Expansion Plans – Nikkei By Investing.com
Investing.com– China is tightening export controls for U.S. technology companies such as Apple Inc (NASDAQ: ), Microsoft Corporation (NASDAQ: ) and Dell Technologies Inc (NYSE: ), delaying their efforts to shift production to Southeast Asia and India, Asia reported on Tuesday, citing sources.
Increased customs checks, linked to dual-use technology export controls introduced in December, have caused delays of several days or even weeks for shipments of manufacturing equipment and materials, the report said.
Dual-use items, which have both military and commercial applications, now face tighter controls at Chinese customs. While official controls target specific items such as tungsten, graphite and gyroscope test tools, companies report that even items not on the list are being delayed due to similar classification codes, according to a Nikkei report.
The tighter control coincides with the escalation of US-China trade tensions. President-elect Donald Trump has promised tariffs of up to 60% on all Chinese goods, while the Biden administration recently imposed further restrictions on China’s access to advanced AI chips and added more than 140 Chinese entities to a trade blacklist. Beijing retaliated by banning exports of critical materials such as gallium and germanium to the US
The delays are affecting the diversification strategies of major U.S. companies, which still depend on Chinese-sourced materials and equipment to build production lines outside China, the report said.
Analysts suggest the tighter checks are part of China’s strategy to slow the manufacturing exodus.
While a complete separation from China is unlikely, ongoing trade frictions are forcing companies to rethink their manufacturing strategies, the report said.
