CSET’s Hanna Dohmen shared her insight in an article published by The Washington Post. The article examines new bipartisan legislation in the House Foreign Affairs Committee that would expand U.S. export controls on semiconductor manufacturing equipment and push allied countries to align more closely with Washington’s chip restrictions in the competition with China.
The foreign direct product rule extends U.S. jurisdiction very far.CSET Senior Research Analyst, Hanna Dohmen
Discussing the proposed MATCH Act and its use of the foreign direct product rule, Dohmen said, “The foreign direct product rule extends U.S. jurisdiction very far.” She added, “After the 150 days … if a country then hasn’t matched U.S. controls, that would then trigger the unilateral extraterritorial application of controls on those foreign tools. Those would basically just be restricted. It’s not just a licensing condition.”
To read the full article, visit The Washington Post.