File PhotoThe Biden administration plans to unveil a new rule next month that will expand U.S. powers to stop exports of semiconductor manufacturing equipment from some foreign countries to Chinese chipmakers, two sources familiar with the rule said. A spokesperson for the U.S. Commerce Department, which oversees export controls, declined to comment. The Foreign Direct Product rule stipulates that if a product is made using American technology, the U.S. government has the power to stop it from being sold - including products made in a foreign country. Equipment, for example, could be designated as falling under export controls simply because a chip containing U.S. technology is incorporated into it, they said. "Effective export controls rely on multilateral buy-in," said a separate U.S. official who declined to be identified.
