US provides 12 extra Chinese language tech corporations to commerce blacklist

Firms on the blacklist embrace quantum computing builders and chip corporations.

The US Division of Commerce added a dozen Chinese language tech firms to its Entity Checklist on Wednesday, citing nationwide safety and international coverage issues. This continues the “tech decoupling” that was first initiated by the Trump administration.

The 12 blacklisted corporations are primarily quantum computing and semiconductor firms. Eight of the Chinese language tech firms have been sanctioned on account of their alleged roles in aiding the Chinese language army to develop quantum computing capabilities, in line with the assertion issued by the US Division of Commerce.

A complete of 27 entities and people from China, Pakistan, Japan, and Singapore have been positioned on the Entity Checklist. Potential US suppliers who want to transact with these firms and people should apply for a license earlier than doing enterprise with them.

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The actions will assist forestall the diversion of US applied sciences to China’s army, Secretary of Commerce Gina Raimondo mentioned within the assertion. “The Division of Commerce is dedicated to successfully utilizing export controls to guard our nationwide safety,” Raimondo mentioned.

Chinese language officers criticized the commerce ban and claimed that the US has broadened the idea of nationwide safety and arbitrarily launched sanctions. Shu Jueting, a spokesperson for the Chinese language Ministry of Commerce, mentioned on Thursday, including that the transfer would hurt provide chain safety and restoration of the world financial system.

The restriction is Washington’s newest transfer to dam China’s entry to American cutting-edge applied sciences. In October, US officers mentioned China has a sweeping nationwide plan to dominate 5 key applied sciences, together with AI, quantum computing, and semiconductors, and warned firms in regards to the dangers of buying and selling with China, The Washington Put up reported.

At the very least seven of the newly restricted corporations are partially state-owned, or have ties with state-backed funds, KrASIA discovered.

China plans to attain “tech self-sufficiency” and goals to fulfill 70% of the nation’s semiconductor wants by mobilizing home suppliers. Almost all main tech firms in China, together with Baidu, Tencent, Alibaba, and Huawei, are growing their very own superior chips for smartphones, AI computation, automobiles, and different makes use of.

There are circumstances the place Chinese language firms on the Entity Checklist nonetheless entry international expertise and elements, like the nation’s largest chip maker, SMIC.

Huawei was placed on the Entity Checklist in late 2019, and is now making an attempt to bypass the sanctions by spinning off enterprise arms and licensing designs to exterior corporations.


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