China's chipmakers bought $38 billion in U.S. and allied tools, a sign policy is failing, lawmakers find

By Stephen Nellis SAN FRANCISCO (Reuters) -Gaps in efforts by the U.S. and allies to restrict China's ability to manufacture advanced computing chips have allowed China to buy nearly $40 billion of sophisticated chipmaking gear, according to a bipartisan investigation by U.S. lawmakers. U.S. Democratic and Republican administrations have tried to restrict China's ability to make microchips, viewing the industry as crucial for national security. But inconsistencies in rules issued by the United States, Japan and the Netherlands have led to non-U.S. toolmakers selling to some Chinese firms that U.S. companies could not, according to a report by the U.S. House of Representatives Select Committee on China seen by Reuters. The committee called for broader bans by the group of allies on chipmaki