The Biden administration is threatening to use a novel export control to damage strategic Russian industries, from artificial intelligence and quantum computing to civilian aerospace, if Moscow invades Ukraine, administration officials say.
The administration may also decide to apply the control more broadly in a way that would potentially deprive Russian citizens of some smartphones, tablets and video game consoles, said the officials. Such moves would expand the reach of U.S. sanctions beyond financial targets to the deployment of a weapon used only once before — to nearly cripple the Chinese tech giant Huawei.
The weapon, known as the foreign direct product rule, contributed to Huawei suffering its first-ever annual revenue drop, a stunning collapse of nearly 30 percent last year.
The attraction of using the foreign direct product rule derives from the fact that virtually anything electronic these days includes semiconductors, the tiny components on which all modern technology depends, from smartphones to jets to quantum computers — and that there is hardly a semiconductor on the planet that is not made with U.S. tools or designed with U.S. software. And the administration could try to force companies in other countries to stop exporting these types of goods to Russia through this rule.
This is a slow strangulation by the U.S. government,” Dan Wang, a Shanghai-based technology analyst with research firm Gavekal Dragonomics, said of Huawei. The rule cut the firm’s supply of needed microchips, which were made outside the United States but with U.S. software or tools.
Trump administration again cracks down on Huawei, imposing harsh export control to cut off its chip supply
Now officials in Washington say they are working with European and Asian allies to craft a version of the rule that would aim to stop flows of crucial components to industries for which Russian President Vladimir Putin has high ambitions, such as civil aviation, maritime and high technology.
“The power of these export controls is we can degrade and atrophy the capacity of these sectors to become a key source of growth for the Russian economy,” said a senior Biden administration official, who, like others in this report, spoke on the condition of anonymity to discuss internal deliberations.
Source: mybroadband
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