A bill providing a $52bn boost to US semiconductor manufacturing is not just about America’s chipmakers. The crucial procedural vote this week could impose restrictions that affect funds and technology going to countries such as China. The vote could set the tone for global companies that export chipmaking gear and technology to Chinese chipmakers.

In turn, US chipmakers will focus on how restrictive any qualifying standards for these subsidies would be. These include whether companies do business with China — which would include most US chipmakers. At the same time, the Biden administration is reviewing export policies for sales of certain semiconductors to China. See this as an effort to tighten restrictions towards China’s tech industry.

All this only adds to a growing number of governments distancing their chip-related companies from China. Restrictions are already in place in Taiwan, home to huge chipmakers such as the Taiwan Semiconductor Manufacturing Company. Its government prohibits companies from building advanced foundries in China to protect any local technology. The Netherlands has had discussions with the US over blocking key Dutch semiconductor equipment supplier ASML from exporting its technology and gear to China.