Legislator Calls for Stricter China Chip Export Controls; Minister Says List Will Be Reviewed

(CNA) - Taipei, July 1 -- Legislator Chung Chia-pin of the Democratic Progressive Party urged on Thursday that Taiwan's laws be amended to tighten controls on semiconductor exports to China. He questioned the current regulations, which only restrict 12 categories of semiconductor equipment to China, a stark contrast to the tens of thousands of items controlled for other regions. Minister of Economic Affairs Kung Ming-hsin responded that the Ministry of Economic Affairs will review the current 12 export control items to China, given the changed international environment, and may add to them. However, he noted that amending such regulations involves multiple government agencies, and the ministry will conduct further research.

The Legislative Yuan's Economic Committee held a special report on "Comprehensive Review of Conflict of Interest Regulations in the Review Mechanisms for Subsidies and Investment Projects by the Ministry of Economic Affairs and the National Development Council."

During his questioning, Chung Chia-pin pointed out that the export control regulations for strategic high-tech goods (SHTC) announced by the Ministry of Economic Affairs in February listed China and five other regions as subject to control. However, in reality, only 12 types of semiconductor wafer manufacturing equipment are restricted from export to China. Compared to the tens of thousands of controlled items for other regions, this is akin to "leaving a backdoor open."

Kung Ming-hsin replied that the original regulations were primarily aimed at preventing the transfer of Taiwan's high-end semiconductor manufacturing capabilities to China. However, he admitted that the current international environment is different from that time, and the Ministry of Economic Affairs agrees that a review is necessary. The 12 controlled items will be re-evaluated, and may even be increased depending on the situation.

Chung Chia-pin stated that the Taiwan-US Trade Agreement (ART) requires the establishment of a comprehensive export control system to prevent advanced semiconductors and related equipment from flowing to countries such as China, Russia, Iran, and North Korea. He suggested that the Ministry of Economic Affairs add Article 13-2 to the Trade Act, similar to the model for controlling endangered species, to restrict semiconductor wafer-related process equipment and its manufactured products from being exported to China. (Editor: Lin Shu-yuan) 1150701

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