Foreign Direct Product Rule

Oct. 9, 2022

US aims to control China's chip industry with its Foreign Direct Product Rule (FDPR).

About:

  • Recently US officials applied FDPR to China's advanced computing and supercomputer industry to stop it from obtaining advanced computing chips.
  • The foreign direct product rule, or FDPR, was first introduced in 1959 to control trading of US technologies.
  • It essentially says that if a product was made using American technology, the US government has the power to stop it from being sold – including products made in a foreign country.