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's 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 table, it would make good on President Donald Trump's threat earlier this month to bar "critical software" exports to China by restricting global shipments of items that contain US software or were produced using US software.
On October 10, Trump said in a social media post that he would impose additional tariffs of 100% on China's US-bound shipments, along with new export controls on "any and all critical software" by November 1 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.
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.
"Clearly the US is looking for points of leverage and we are really good at software, so it's not so surprising that this administration has considered it," said Emily Kilcrease, a former trade official now at the Center for a New American Security.
However, it would be extraordinarily difficult to implement and there would be blowback for US industry, she said. "You would hope they are only putting threats on the table that they would carry out and stick with."
The White House declined to comment. The Commerce Department, which oversees export controls, did not respond to requests for comment.
A spokesperson for the Chinese embassy did not comment on the specific US measures under consideration but said China opposed the US "imposing unilateral long-arm jurisdiction measures" and vowed to "take resolute measures to protect its legitimate rights and interests" if the US proceeds down what it views as a wrong path.
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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.
"Everything imaginable is made with US software," 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.
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.
It echoes restrictions 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's Truth Social post came just three weeks before a previously announced meeting with Chinese President Xi Jinping 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.
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