Building on restrictions imposed by former President Donald Trump on China's 5G giant Huawei, the United States would impose on other named Chinese companies the same direct product rule, which specifies that foreign companies may not sell anything made with US technologies to the sanctioned entities, according to the New York Times.
Other planned restrictions include controlling the sale of the most advanced US-made tools to China's semiconductor industry, and also limiting the sale of US made microchips to China's most powerful supercomputing projects and data centers.
One company likely to be targeted is Chinese memory chip maker Yangtze Memory Technologies Company, sources said.
These new sweeping restrictions on sales of US technology to China are in keeping with Joe Biden administration's position on technology transfers and innovation. National Security Advisor Jake Sullivan stated on September 16 that maintaining relative advantages over competitors in key technologies was no longer enough, and the US needed to "maintain as large of a lead as possible."