The US and Chinese governments have been clashing once again over trade policies, with the latest point of contention revolving around Beijing’s new rare earth export restrictions. These rules require foreign companies to obtain an export license for products containing these vital materials.
According to a Reuters report, the Trump administration is currently considering several response strategies. One key plan under review involves imposing new restrictions on exports to China of items made with, or containing, US-made software. This aligns with Trump’s recent threat to impose export controls on “any and all critical software,” announced alongside a new 100% tariff on Chinese goods earlier this month.
While the plans are still under discussion, a US official and three individuals briefed by US authorities have confirmed that broad software export restrictions are among the measures being contemplated. US Treasury Secretary Scott Bessent stated, “everything is on the table” when asked specifically about potential software curbs on Wednesday. He added, “If these export controls—whether it’s software, engines, or other things—happen, it will likely be in coordination with our G7 allies.”
Should these restrictions be implemented, the range of affected products could be extensive, as US software is integrated into the production of numerous items, from jet engines to farming equipment. Widely used operating systems such as Microsoft Windows and Google’s Android are common throughout China as well. Although Chinese alternatives, like Huawei’s HarmonyOS, exist, barring devices and equipment reliant on US software from export to China would likely deal a significant blow to the Chinese economy.
On the other hand, there is a possibility that a de minimis rule could factor into the final plan. While some reports suggest that all products made with or containing US software might be impacted, it is plausible that the restrictions would instead apply based on a threshold—such as a percentage of US software content within the product. This approach would be more reasonable and manageable.
At this stage, it’s hard to say for certain, as US-China trade relations seem to have escalated into a game of brinkmanship, with both countries exchanging increasingly tough rhetoric.
US President Donald Trump is scheduled to meet with Chinese President Xi Jinping in South Korea next week for face-to-face talks. It is expected that trade restrictions will be a major topic on the agenda. Given past instances where meetings with world leaders have led Trump to adjust his administration’s stance, it is likely that any formal announcement regarding these potential export controls will be postponed until after the talks conclude.
https://www.pcgamer.com/software/everything-is-on-the-table-trump-administration-reportedly-considering-curbs-on-exports-made-using-us-software-to-china/