The U.S. Commerce Department has added 140 Chinese technology companies to the export control list, restricting exports of equipment used to make computer chips, chipmaking tools, and software. This move aims to limit China’s access to advanced technologies that pose a risk to national security. The Chinese Commerce Ministry protested, calling it economic coercion, and vowed to protect its rights and interests.
The list expansion includes Chinese-owned businesses in Japan, South Korea, and Singapore, affecting companies that produce high-bandwidth memory chips crucial for applications like artificial intelligence. The addition to the entity list means U.S. companies will likely be denied export licenses to do business with those entities. The Biden administration has been encouraging domestic semiconductor investments.
China has accused the U.S. of pursuing technology hegemony by blocking Chinese tech companies like Huawei from American suppliers. In response, China has ramped up efforts to develop its own advanced computer chips. Japanese chipmakers and related equipment manufacturers saw a surge in shares following the news, while Chinese companies like Naura Technology Group and Piotech Inc. saw declines.
The U.S. aims to impede China’s military modernization, WMD programs, and human rights abuses by restricting access to advanced technologies. This move comes amid increasing tensions between the two countries over technology control and trade practices.
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