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Home » U.S. Increases Number of Chinese Tech Companies Subject to Export Controls

U.S. Increases Number of Chinese Tech Companies Subject to Export Controls

The U.S. and Chinese flags juxtaposed against each other
Photo: iStock / niphon
December 3, 2024
SupplyChainBrain

More Chinese technology companies that make equipment used to make computer chips, chipmaking tools and software are now subject to export controls, according to AP News.

The U.S. Commerce Department has expanded the list of 140 companies included in the so-called “entity list,” and nearly all are based in China, with some others being Chinese-owned businesses in Japan, South Korea and Singapore.

The revised rules were posted on December 2 on the website of the U.S. Federal Register for publication later this week. They also limit exports of high-bandwidth memory chips to China, which are needed to process massive 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.

According to AP News, Commerce Secretary Gina Raimondo said the move was intended to impair China’s ability to use advanced technologies that “pose a risk to our national security.”

The addition of the companies to the “entity list” means that U.S. tech vendors will be denied export licenses for sales to them.

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