The US administration is deeply divided over the possible inclusion of a number of Chinese chip companies on a list of exporters subject to sanctions, the Financial Times (FT) reports.
According to the newspaper, the White House is considering adding these Chinese companies to the “blacklist”, but some officials are concerned that this step could negatively impact efforts to reach a long-term trade agreement with China. The US Commerce Department has already prepared a list of Chinese companies, which, in particular, includes chip maker ChangXin Memory Technologies (CXMT). It is assumed that these companies will be added to the “entity list”, the FT reports, citing five sources familiar with the situation. The companies also include subsidiaries of Semiconductor Manufacturing International Corporation (SMIC), a leading chip maker in China, and Yangtze Memory Technologies, the largest manufacturer of flash memory chips.
The Trump administration believes that introducing export controls on key Chinese groups at this stage could jeopardize bilateral negotiations, the publication notes. The newspaper points out that adding chip manufacturers to the “blacklist” is another attempt by the United States to make it difficult for China to access advanced American chips and the technologies used in their production, which could potentially be used for military purposes.
On May 10-11, Sino-American trade and economic talks were held in Switzerland, following which the parties agreed to reduce the additional duties introduced in early April to 10%, starting from May 14.
In February, US President Donald Trump announced an increase in duties on all Chinese imports by 10%. In response, China introduced targeted duties of 10% to 15% on agricultural machinery, some cars, oil, coal, and LNG from the United States. In March, Washington raised tariffs by another 10%, and Beijing responded by introducing targeted duties of 10%.
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