The United States Department of Commerce has added 36 Chinese companies or subsidiaries to its list of companies that cannot import certain US technologies without a license, citing national security, foreign policy interests and the possibility some already banned companies could help circumvent restrictions.
“Today, we build on the actions we took in October to protect U.S. national security by leveraging the People’s Republic of China (PRC) capability, artificial intelligence, advanced computing and other powerful, commercially available military technology Modernizing and deploying human rights greatly curb abuse,” said Secretary of State Alan Estevez.
The list [PDF] does not contain many names that would be known outside of the Middle Kingdom. The best-known company on the list is China’s largest flash memory maker, state-owned Yangtze Memory Technologies Co (YMTC), along with one of its Japan-based subsidiaries.
Already listed on the Department’s Unverified List (UVL), YMTC is unable to source some US wafer fab equipment and other US-made technology. Inclusion in the entity list means there are even more supplies it can’t procure without a special license.
The ready-made statement explained that the move targets not only the PRC’s military modernization and human rights abuses, but also key suppliers of components used in Iranian drones, as well as Russian-Belarusian military end-users who serve the Russian military supply.
Thirty of the units were added to help modernize the Chinese military, and 21 of these did so through AI chip-related activities. Another organization made the list for enabling human rights abuses and one for supporting Iranian drone production.
Four were added as they are considered to have “adverse implications” for US national security or foreign policy.
YMTC, a company named Hefei Core Storage Electronic Limited and another named PXW Semiconductor Manufactory, were included “based on information indicating that these companies pose a risk of diversion to parties on the entity list.” YMTC and Hefei Core Storage are suspected of forwarding kits to Huawei and/or Hikvision Digital Technology.
Readers are well aware that Huawei has been accused of helping Beijing spy on the world — or at least gaining a foothold in networks that allow China to spy on its rivals. Hikvision brands video cameras as too risky for use by UK government agencies.
At the same time, the ministry added the companies to the list of companies and also removed 25 after they submitted documents proving they did not deserve sanctions. The ministry has also added nine Russia-affiliated entities to its Unverified List (UVL) of entities not qualifying for licensure for import or export. The nine are said to have failed to complete end-use controls.
A company on the UVL list has 60 days to demonstrate that the company and its products comply with export regulations. It will be updated to the entity list if it doesn’t meet the requirements. ®
https://www.theregister.com/2022/12/16/us_bans_companies_it_suspects/ US updates lists of banned organizations • The Register