The Foreign Direct Product Rule

The United States is looking to curb China's advanced computing and chip production capabilities by using the so-called Foreign-Direct Product Rule to prevent companies globally from selling certain advanced computing chips to Chinese buyers without a U.S. government license. To understand the background, the details, and the implications of this, Lawfare publisher David Priess sat down with Martijn Rasser, senior fellow and director of the Technology and National Security Program at the Center for a New American Security. Martijn also served as a senior intelligence officer and analyst at the Central Intelligence Agency and a senior adviser in the office of the Secretary of Defense. They talked about the nature of the semiconductor industry, what a Foreign-Direct Product Rule is and what it can do, whether the Commerce Department is well positioned to do what's proposed, the tension of working with allies versus going it alone, and the precedent of U.S.-led actions against Huawei.

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