U.S. Expands Export Controls on Chinese Tech Firms, Citing National Security
The U.S. Commerce Department has significantly broadened its export controls on Chinese technology companies, adding 140 entities to its “entity list.” This move, announced on Tuesday, primarily targets businesses based in China but also includes Chinese-owned companies operating in Japan, South Korea, and Singapore.
In addition to expanding the entity list, the Commerce Department has implemented new rules limiting the export of high-bandwidth memory chips to China. These actions are part of Washington’s ongoing efforts to address national security concerns related to advanced technology.
Commerce Secretary Gina Raimondo emphasized the national security risks associated with these companies, stating that export licenses for U.S. firms dealing with listed entities are likely to be denied. The measures aim to prevent Chinese companies from utilizing U.S. technology in the production of advanced semiconductors, potentially impacting China’s military modernization and capabilities related to human rights issues.
China has strongly protested these actions, labeling them as economic coercion and non-market practices. The Chinese government accused the U.S. of pursuing “technology hegemony” and objected to what it sees as “long-arm jurisdiction” affecting companies in other countries that use American technology.
This latest move is part of a broader U.S. strategy to pressure Chinese tech giants, exemplified by previous actions against companies like Huawei. In response, China has intensified its efforts to boost domestic tech development, allocating billions in subsidies and investments to its technology industry.
The global tech industry is feeling the ripple effects of these tensions. While Chinese manufacturers have made progress in some areas, they still lag in others. Meanwhile, Japanese chipmakers have seen a surge in stock prices, with companies like Advantest, Tokyo Electron, Applied Materials, and Disco Corp benefiting from the news. The Tokyo Nikkei 225 index also rose in response.
Conversely, Chinese companies on the entity list, such as Naura Technology Group and Piotech Inc., experienced stock declines following the announcement.
As this situation continues to evolve, the tech industry worldwide is closely monitoring developments and their potential impact on global supply chains and technological innovation.
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