BANGKOK — The U.S. Commerce Department has expanded the list of Chinese technology companies subject to export controls to include many companies that make equipment used to make computer chips, chipmaking tools and software.
THE 140 companies The new entities included on the “entity list” are almost all based in China. But some are Chinese companies established in Japan, South Korea and Singapore.
The revised rules were posted Monday on the U.S. Federal Register website for publication later this week. They also limit exports of high-bandwidth memory chips to China. Such chips are needed to process huge amounts of data in advanced applications such as artificial intelligence.
China’s Commerce Ministry protested and said it would act to protect its “rights and interests,” without giving any details.
“This is a typical act of economic coercion and non-market practice,” the ministry said in a statement.
Commerce Secretary Gina Raimondo said the move was aimed at harming China’s ability to use advanced technologies that “pose a risk to our national security.”
Adding these companies to the “entity list” means that export licenses will likely be denied to any U.S. company attempting to do business with them.
Washington has gradually increased the number of companies covered by these export controls, as President Joe Biden’s administration has encouraged an expansion of semiconductor investment and manufacturing in the United States.
“The purpose of these Entity List actions is to prevent PRC (Chinese) companies from exploiting U.S. technology to produce advanced semiconductors locally,” said Assistant Secretary Matthew S. Axelrod. of the enforcement of export laws, in a press release. “By adding semiconductor manufacturing facilities, equipment manufacturers, and key investment companies to the Entity List, we are directly hindering the PRC’s military modernization, weapons of mass destruction programs, and its capacity to repress human rights. »
China has accused the United States of pursuing “technological hegemony” as Washington steps up pressure on Chinese tech giant Huawei and other Chinese high-tech makers by blocking access to American suppliers.
He particularly opposes what he calls “long-arm jurisdiction” measures, such as the U.S. decision to expand corporate export controls to apply to manufacturers of manufacturing equipment of chips in South Korea, Taiwan and Singapore if they use American technology that could be sold. in China.
Pressure from Washington has prompted China to step up efforts to develop its own advanced computer chips and other technologies, providing billions in subsidies and investments to the industry. Chinese manufacturers have made rapid progress even if they remain several years behind in certain areas.
Shares of Japanese makers of computer chips and related equipment jumped Tuesday, with testing equipment maker Advantest up 4.6%, Tokyo Electron up 4.6% and Applied Materials up 4.9%. Disco Corp., another chipmaker, jumped 6.9%, while Tokyo’s benchmark Nikkei 225 stock index gained 2.3%.
Meanwhile, China’s Naura Technology Group, whose companies were included in the new list, fell 3% and Piotech Inc., another chipmaker, lost 5.3%.