Chinese leadership is mounting fierce opposition to pending American legislation designed to limit Beijing’s access to advanced semiconductor manufacturing equipment, escalating tensions just days before crucial diplomatic meetings between the world’s two largest economies.
The controversial legislation, dubbed the MATCH Act, is anticipated to feature prominently in this week’s high-profile discussions in Beijing, where President Trump and Chinese President Xi Jinping will meet for the first time since their nations established a delicate trade agreement in South Korea last year.
While the Trump administration has refrained from implementing fresh technology export restrictions on China despite ongoing national security worries, lawmakers on Capitol Hill have taken initiative to address this void. Both chambers of Congress introduced bills last month designed to hamper Chinese semiconductor manufacturers’ ability to create AI chips, partly through mechanisms that would pressure allied nations to restrict equipment sales to China.
Beijing’s response has been swift and pointed. Chinese authorities have openly condemned the proposed law, developed retaliatory strategies should it pass, and according to sources familiar with the situation, called in American embassy personnel in China to voice their objections to the potential legislation.
Additionally, China’s Ministry of Commerce arranged a meeting in April at its Washington embassy with US semiconductor industry leaders to discuss chip-related matters, including the MATCH Act, though the specific companies involved were not disclosed.
“Congress understands how important it is for the United States to win the AI race with China — and Beijing understands its chipmaking industry is extremely vulnerable to American export control,” explained Ryan Fedasiuk, a former State Department adviser on US-China relations who anticipates the bill will surface during this week’s Beijing discussions.
Sources indicate that while other issues will dominate the summit agenda, Chinese representatives have already brought up the legislation during preliminary meetings leading up to the main talks.
The White House has remained neutral on the proposed law. When asked Friday about the bill and whether it might be discussed in Beijing, a White House representative declined to comment, stating: “We don’t get ahead of the President on pending legislation.”
Chinese embassy representatives in Washington also refused to comment on whether the bill has been raised in diplomatic conversations or discuss the embassy industry meeting or the summoning of US diplomatic staff in China.
However, Chinese officials have been vocal in their criticism since the bill’s introduction last month, and the government has announced potential countermeasures it could deploy if the legislation becomes law.
“The U.S. is using all sorts of pretexts to coerce other countries into joining its technological blockade against China,” stated Liu Pengyu, the Chinese embassy spokesperson, when asked about the MATCH Act by Reuters last month.
Following a House Foreign Affairs committee vote on April 22 that advanced the proposed legislation alongside other AI and semiconductor-related bills, China’s Ministry of Commerce issued its own statement.
“Should the relevant bills be enacted into law, they would severely undermine the international economic and trade order,” a MOFCOM spokesperson declared. China will “decisively take necessary measures to resolutely safeguard the lawful and legitimate rights and interests of Chinese enterprises.”
On April 13, China announced a new decree it could deploy against US regulations like the MATCH Act, including placing those who support or enforce inappropriate foreign extraterritorial actions on a “Malicious Entity List.” The measure also creates opportunities for legal challenges.
The MATCH Act seeks to eliminate loopholes in chipmaking equipment sales to China by focusing on essential technology from the United States, Japan, and the Netherlands — the three nations that control the market. Should foreign countries fail to restrict these exports within months of the law taking effect, the proposed legislation establishes a framework for the US to impose its own controls. The bill also mandates licensing for equipment maintenance services.
Netherlands-based ASML, the global leader in deep ultraviolet immersion lithography equipment, is considered a primary target of the legislation and could face new limitations in the Chinese market. Japanese equipment manufacturer Tokyo Electron is also seen as potentially affected. ASML declined to provide comment, while Tokyo Electron did not respond to requests for comment.
The MATCH Act passed the House Foreign Affairs committee with a 36-8 vote last month, after the draft legislation underwent multiple revisions following lobbying efforts. Micron, America’s largest memory chip manufacturer, was a key supporter behind the bill, as Reuters previously reported.
