Biden Administration set to impose new restrictions on chip sales to China
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Some of the leading U.S. semiconductor companies are about to face new restrictions on technology and products that can be sold to Chinese companies.
The Biden Administratoin has reportedly told the heads of several American chip companies to expect the new rules could effectively double the amount of semiconductor products that would require U.S. export licenses before such technologies could be sold in China, and could go into effect as soon as April. Additionally, other rules that limit the support and sale of specific semiconductor products are set to go into effect under the new U.S. efforts aimed and slowing down, or even preventing Beijing from developing its own advanced chip industry.
According to a report from Bloomberg, the U.S. intends on pushing the new strategy along with the Netherlands and Japan, which along with the U.S. are among the world's top developers of semiconductors and the equipment used to build chipsets.
The move could ramp up what has been a difficult relationship with the U.S. and China of late due to concerns about American semiconductor technology getting into the hands of Chinese companies with ties to the Beijing government and China's military.
Among U.S. chip-equipment companies that could find themselves under any new restrictions out of Washington, Applied Materials (NASDAQ:AMAT) and Lam Research (NASDAQ:LRCX) both saw their shares give up more than 2% Friday, while KLA Corp. (NASDAQ:KLAC) share fell nearly 3% on the day, and Dutch semiconductor giant ASML Holding (NASDAQ:ASML) slipped by less than 1%.
In addition to the steps being taking to blunt China's chip industry expansion, the U.S. has also upped the rhetoric about the popular video app TikTok, which is owned by ByteDance (BDNCE), a company with close ties to the Beijing government. 
On Tuesday, Senate Intelligence Commitee Chairman Mark Warner (D.-Virginia) introduced legislation aimed at reining in the reach of TikTok and other technologies that collect data on U.S. consumers. The proposal would give the president "new authorities to mitigate the threat posed by technology products."