US-China Chip War: Biden Administration Set To Put Chinese Chipmaker YMTC On Trade Blacklist

US-China Chip War: Biden Administration Set To Put Chinese Chipmaker YMTC On Trade Blacklist

by Swarajya Staff - Dec 14, 2022 10:55 AM +05:30 IST
US-China Chip War: Biden Administration Set To Put Chinese Chipmaker YMTC On Trade BlacklistJoe Biden (left) and Xi Jinping.

The Biden administration is reportedly set to place Chinese chipmaker Yangtze Memory Technologies (YMTC) on a trade blacklist, in the latest move by the US to target China-based technology companies that it believes pose a threat to its security.

The US Commerce Department is expected to add YMTC and other Chinese firms to its "entity list" as early as this week, Finacial Times reported citing people familiar with the plan.

The move would mean that US groups are banned from selling technology to companies on the list unless they have an export license that is difficult to obtain.

The decision to place YMTC on the list comes two months after the US introduced export controls that made it more difficult for China to acquire and produce cutting-edge semiconductors.

YMTC has been accused of violating US export controls by supplying Chinese telecoms equipment maker Huawei with Nand memory chips for its smartphones.

US lawmakers have been pressing the Biden administration to place the company on the entity list for some time.

Earlier, the US lawmakers had also warned American technology giant Apple that it would face harsh scrutiny if it proceeded with a plan to buy YMTC chips.

Following the warning by US lawmakers, Apple had halted its plans to use memory chips from YMTC.

In October, the US placed more than 30 Chinese companies, including YMTC, on its "unverified list" of entities for which it had been unable to conduct end-user checks to make sure that American technology was not being diverted for unauthorised uses.

At the time, the US set a 60-day window for companies to allow investigations to be conducted, or face the threat of being added to the entity list.

The move against Yangtze Memory Technologies (YMTC) and other Chinese firms marks a further escalation in the ongoing US-China chip war.

Washington is looking to hinder China's ability to develop technologies with military applications, such as artificial intelligence, nuclear weapons modeling, and hypersonic weapons development. In response, China has been working to bolster its own technological capabilities as it faces increasing pressure from the US and its allies.

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