China’s Imports of Chip-Making Gear Drop to Lowest Since Mid-2020

The U.S. sanctions announced in October caused major foreign enterprises to limit or cease the supply to Chinese companies of equipment to make the most advanced chips

(Bloomberg) — China’s purchases of machines to make computer chips contracted in November to their lowest in more than two years, hammered by cratering electronics demand and new U.S. export restrictions that are limiting the ability of Chinese businesses to buy the most advanced equipment.

Chinese companies imported $2.3 billion of machines used in semiconductor manufacturing in November, down more than 40% from a year earlier to the lowest level since May 2020, according to customs data released Wednesday. Imports from the six major supplying nations including the U.S., Japan and the Netherlands all fell at a double-digit pace in November, even before some of those nations agreed to join the U.S. in further limiting shipments of the most advanced gear to China.