Trump Officials Weighed Broader China Tech Restrictions Ahead of Trade Talks

China Accounts for Tens of Billions of Dollars in Revenue for Western Equipment Companies

- Amrith Ramkumar & Liza Lin

Commerce Department officials weighed new export limits on critical technology going to China ahead of recent trade talks in London, adding to the Trump administration's arsenal if tensions between Washington and Beijing escalate again.

The Commerce Department unit overseeing export controls in recent weeks weighed tougher limits on semiconductors, including cutting off sales to China of a wider swath of chip-manufacturing equipment, people familiar with the matter said.

Such a move would have covered equipment used to make everyday semiconductors, expanding beyond existing export limits on equipment for producing advanced chips.

The decision could have roiled supply chains for chips needed to make everything from smartphones to cars, while threatening billions of dollars in sales for leading equipment companies such as Applied Materials, Lam Research and KLA.

The restrictions were discussed as an option if trade talks didn't go well and are no longer actively being considered, a White House official said.

The official declined to say whether they might still be an option down the road.

In London last week, the U.S. and China agreed to reinstate a recent truce they had reached cutting sky-high tariffs.

The detente involves U.S. access to Chinese rare-earth materials and allowing Chinese students to continue studying at U.S. universities.

Even so, tensions continue.