\n<\/p>\n
The Trump administration is considering a plan to curb a dizzying array of software-powered exports to China, from laptops to jet engines, to retaliate against Beijing\u2019s latest round of rare earth export restrictions, according to a US official and three people briefed by US authorities.<\/p>\n
While the plan is not the only option on the table, it would make good on Donald Trump\u2019s threat earlier this month to bar \u201ccritical software\u201d exports to China by restricting global shipments of items that contain US software or were produced using US software.<\/p>\n
On 10 October, Trump said in a social media post that he would impose additional tariffs of 100% on China\u2019s US-bound shipments, along with new export controls on \u201cany and all critical software\u201d by 1 November without further details. To be sure, the measure, details of which are being reported for the first time, may not move forward, the sources said.<\/p>\n
But the fact that such controls are being considered shows the Trump administration is weighing a dramatic escalation of its showdown with China, even as some within the US government favor a gentler approach, according to two of the sources. US stock indexes briefly extended losses on the news, with the S&P 500 down 0.8% and the Nasdaq 1.3% lower before paring their losses.<\/p>\n
The White House declined to comment. The commerce department, which oversees export controls, did not respond to requests for comment.<\/p>\n
A spokesperson for the Chinese embassy did not comment on the specific US measures under consideration but said China opposed the US \u201cimposing unilateral long-arm jurisdiction measures\u201d and vowed to \u201ctake resolute measures to protect its legitimate rights and interests\u201d if the US proceeds down what it views as a wrong path.<\/p>\n
Administration officials could announce the measure to put pressure on China but stop short of implementing it, one of the sources said. Narrower policy proposals are also being discussed, two of the people said.<\/p>\n
\u201cEverything imaginable is made with US software,\u201d one of the sources said, highlighting the broad scope of the proposed action. The sources declined to be named because the matter was not public.<\/p>\n
The move could disrupt global trade with China, especially for technology products, and could come at a cost to the US economy if fully implemented.<\/p>\n
The measure, if adopted, would echo restrictions that the Biden administration imposed on Moscow after its 2022 invasion of Ukraine. Those rules restricted exports to Russia of items made globally using US technology or software. Trump\u2019s Truth Social post came just three weeks before a previously announced meeting with Xi Jinping, China\u2019s president, in South Korea, and a day after China dramatically expanded its export controls on rare earth elements. China dominates the market for such elements, which are essential to tech manufacturing.<\/p>\n
In his post, Trump said China\u2019s action, also effective 1 November, represented \u201ca moral disgrace\u201d that would impose controls on \u201cvirtually every product they make\u201d.<\/p>\n
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Sign up to This Week in Trumpland<\/span><\/p>\n A deep dive into the policies, controversies and oddities surrounding the Trump administration<\/p>\n Privacy Notice: <\/strong>Newsletters may contain information about charities, online ads, and content funded by outside parties. If you do not have an account, we will create a guest account for you on theguardian.com to send you this newsletter. You can complete full registration at any time. For more information about how we use your data see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.<\/span><\/p>\n after newsletter promotion<\/p>\n But questions have swirled about what Trump meant in his response by \u201ccritical software\u201d controls.<\/p>\n While Trump has slapped a series of tariffs on China since taking office in January, he has wavered in his use of export restrictions against Beijing, first imposing strict new curbs on shipments of Nvidia\u2019s AI chips as well as chip design software to China, and later removing them.<\/p>\n China expressed its opposition to a Trump administration rule last month that restricts US companies from shipping goods and technology to companies at least 50% owned by sanctioned Chinese firms. Chinese imports currently face US tariffs around 55%, which could shoot up to 155% if Trump follows through on his threatened tariff hike. But Trump appeared to soften his posture on Beijing following the threats, posting on 12 October: \u201cThe U.S.A. wants to help China, not hurt it!!!\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" The Trump administration is considering a plan to curb a dizzying array of software-powered exports to China, from laptops to jet engines, to retaliate against Beijing\u2019s latest round of rare earth export restrictions, according to a US official and three people briefed by US authorities. While the plan is not the only option on the<\/p>\n","protected":false},"author":1,"featured_media":29893,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[794,2153,16008,8158,5765,81],"class_list":{"0":"post-29892","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-administration","9":"tag-china","10":"tag-curbs","11":"tag-exports","12":"tag-software","13":"tag-trump"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/29892","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29892"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/29892\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/29893"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}