More curbs on China? Trump admin mulls restrictions on ‘any and all critical software’: Report
Trade tensions between Washington and Beijing might rise further as the US is planning its next move against China, after the 155% tariff threat.The Trump admin is reportedly preparing a response to China’s recent rare earth export restrictions by limiting shipments of US software-powered products to Beijing, a US official told Reuters. The proposed measures could span across a wide range of items, from laptops to jet engines.The curb aims to enforce US President Donald Trump’s October 10 social media warning, in which he announced plans to impose new tariffs of 100% on Chinese shipments to the US and introduce export controls on “any and all critical software” by November 1. Details of how the measures would be applied are not yet clear.Officials emphasised that the proposal may not be implemented, but its consideration signals a potential intensification of trade tensions with China. “Everything imaginable is made with US software,” one source said, highlighting the wide-reaching nature of the possible controls.The plan would target global shipments of products either containing US software or produced using US technology, echoing export restrictions imposed by the Biden administration on Russia following the 2022 invasion of Ukraine. Analysts warn that if fully applied, the controls could disrupt trade with China and carry economic costs for the US.A spokesperson for the Chinese embassy refrained from addressing the US measures, but stated that China opposes “unilateral long-arm jurisdiction measures” and would take “resolute measures to protect its legitimate rights and interests” if the US proceeds, Reuters reported.Trump’s announcement came just three weeks before a previously scheduled meeting with Chinese President Xi Jinping in South Korea, and a day after China expanded its rare earth export controls, which are critical for technology manufacturing. The US president described the Chinese move as “a moral disgrace” and warned it would affect “virtually every product they make.”The administration is reportedly considering announcing the measures to apply pressure without putting them into effect immediately. Smaller and more limited proposals are also being discussed amid debates over how far to escalate.Trump’s stance on export restrictions has fluctuated during his presidency. While he initially imposed strict curbs on Nvidia’s AI chips and chip-design software exports to China, some measures were later lifted. Last month, China criticised a Trump administration rule limiting shipments from US firms to companies at least 50% owned by sanctioned Chinese entities.
