Yangtze Memory Technologies (YMTC), a Chinese chip manufacturer, and 35 other China based companies will be added to a trade blacklist by the Biden administration, Bloomberg News reported on Tuesday. This will restrict them from purchasing specific American components.
According to the story, which cited a source familiar with the situation, the US Department of Commerce will include the Chinese businesses on an “Entity List” as soon as this week.
Once a firm is added to the entity list, even low-tech supplies from the US must apply for a special license before sending them to the company.
In response to a request for comment outside of office hours, YMTC declined, and the US Department of Commerce did not immediately react.
In prepared remarks seen by Reuters last month, an official from the US Commerce Department stated that dozens of other Chinese businesses, including YMTC, were “at risk” of being put on a trade blacklist as early as December 6.
Tensions with Beijing increased in October when 31 organizations, including YMTC, were added to a list of businesses that US inspectors have been unable to investigate.
To halt Beijing’s scientific and military advancements, the Biden administration also announced a comprehensive list of export prohibitions in October.
It includes a provision to prevent China from obtaining specific semiconductor chips produced anywhere in the globe using US machinery.
China has filed a trade complaint with the World Trade Organization, calling the American plan to stop the supply of sophisticated computer chips and equipment for chip manufacturing to Chinese firms “trade protectionism.”
According to a statement, the nation’s trade ministry officially complained to the United States with the WTO on Monday. The trade organization, which includes a dispute settlement procedure, has both countries as members.
Earlier China complained about “trade protectionism”
According to the ministry, China’s launching a case at the WTO is required to protect its legitimate rights and interests and is intended to address its concerns through legal methods.
The Biden administration revealed a comprehensive set of export rules on October 7 prohibiting Chinese firms from acquiring sophisticated chips and chip-making machinery without a license. Additionally, the restrictions limit how US nationals and anyone with green cards may assist in the “creation or production” of chips at specific Chinese factories.
The commerce ministry denounced the US action as endangering the stability of the world supply chain and as “a classic practice of trade protectionism.” China’s protest against the international trade organization is its initial response to the US chip penalties.
According to US authorities, the export restrictions were put in place to safeguard national security concerns.
