US expands list of Chinese technology companies under export controls

BANGKOK — The U.S. Commerce Division has expanded the record of Chinese language know-how corporations topic to export controls to incorporate many who make gear used to make pc chips, chipmaking instruments and software program.

The 140 companies newly included within the so-called “entity record” are almost all based mostly in China. However some are Chinese language-owned companies in Japan, South Korea and Singapore.

The revised guidelines have been posted Monday on the web site of the U.S. Federal Register for publication later this week. Additionally they restrict exports of high-bandwidth reminiscence chips to China. Such chips are wanted to course of large quantities of information in superior functions similar to synthetic intelligence.

China’s Commerce Ministry protested and stated it could act to guard its “rights and pursuits,” with out giving any particulars.

“It is a typical act of financial coercion and non-market follow,” the ministry stated in an announcement.

Commerce Secretary Gina Raimondo stated the transfer was supposed to impair China’s skill to make use of superior applied sciences that “pose a danger to our nationwide safety.”

The addition of the businesses to the “entity record” implies that export licenses will probably be denied for any U.S. firm attempting to do enterprise with them.

Washington has been step by step increasing the variety of corporations affected by such export controls, because the administration of President Joe Biden has inspired an growth of investments in and manufacturing of semiconductors within the U.S.

“The aim of those Entity Checklist actions is to cease PRC (Chinese language) corporations from leveraging U.S. know-how to indigenously produce superior semiconductors,” Matthew S. Axelrod, the assistant secretary for export enforcement, stated in an announcement. “By including key semiconductor fabrication amenities, gear producers, and funding corporations to the Entity Checklist, we’re immediately impeding the PRC’s army modernization, WMD (weapons of mass destruction) packages, and skill to repress human rights.”

China has accused the U.S. of pursuing “know-how hegemony,” as Washington steps up strain on Chinese language tech large Huawei and different Chinese language producers of superior know-how by blocking entry to American suppliers.

It significantly objects to what it calls “long-arm jurisdiction” strikes such because the U.S. determination to increase export controls to corporations to use to chip-making gear makers in South Korea, Taiwan and Singapore in the event that they use any U.S. know-how that may be bought to China.

Strain from Washington has spurred China to step up its efforts to develop its personal superior pc chips and different applied sciences, offering billions in subsidies and investments for the business. Chinese language producers have made fast progress despite the fact that they continue to be years behind in some areas.

Shares in Japanese pc chip makers and makers of associated gear surged Tuesday, with testing gear maker Advantest surging 4.6%, Tokyo Electron gaining 4.6% and Utilized Supplies up 4.9%. Disco Corp., one other chipmaker, jumped 6.9%, whereas the Tokyo benchmark Nikkei 225 inventory index gained 2.3%.

In the meantime, China’s Naura Know-how Group, whose corporations have been included within the new record, fell 3% and Piotech Inc., one other chipmaker, misplaced 5.3%.