US Set To Add Chinese Chipmaker And Over 30 Firms To Trade Blacklist

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by Tyler Durden
Wednesday, Dec 14, 2022 - 04:11 PM

Bloomberg reported that as soon as this week, the Biden administration could place Chinese chip maker Yangtze Memory Technologies (YMTC) and over 30 other Chinese firms on a trade blacklist that would prevent them from acquiring US semiconductor components.   

The action would mark another escalation in the deepening US-China technology war. Washington is trying to crush China's ability to develop and manufacture advanced chips for military applications. 

People familiar with the US Department of Commerce's move expect YMTC and the 35 other companies could be added to the so-called "Entity List" as early as this week. Once the companies are on the list, US suppliers must apply for special licenses to ship even low-grade items overseas. 

Bloomberg pointed out that Huawei Technologies Co.'s consumer smartphone business was severely impacted after it was placed on the list. 

The latest action, whether this week or in the coming month, comes after President Biden and President Xi Jinping held their first in-person meetings at the G20 summit in Bali, Indonesia. Also, the potential action comes two months after the US unveiled harsh export controls on YMTC and 30 other Chinese companies.  

On Wednesday, Foreign Ministry spokesman Wang Wenbin said at a regular press briefing that the US has "politicized and weaponized economic cooperation," adding that Washington's actions are causing supply chain disruptions. He said Beijing would take steps to protect its chip industry. 

More broadly, Washington is negotiating with Japan and the Netherlands in a trilateral deal to prevent companies from selling chipmaking equipment to China. The goal is to slow down the progress of China's accession as it aims to become the top economic superpower.