What is the US blocking with new chip industry sanctions?

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US Expands Sanctions on China's Chip Sector, Targeting AI and Memory Manufacturers

The United States is expanding its trade restrictions on China's technology sector by adding Chinese memory chipmaker YMTC and 21 other companies involved in artificial intelligence chips to a trade blacklist. This action prevents these entities from acquiring US technology and, in some cases, technology produced globally using US equipment, citing national security interests and China's military modernization efforts.
Restrictions on YMTC and AI Chip Entities

Yangtze Memory Technologies Corp (YMTC) is being placed on the entity list due to concerns that it could divert US technology to previously sanctioned Chinese companies like Huawei and Hikvision. This move will require YMTC's suppliers to obtain difficult-to-secure licenses before shipping US goods to the company. Furthermore, 21 Chinese AI chip entities, including Cambricon and CETC, will face a penalty that effectively bars their access to technology manufactured anywhere in the world if US equipment was involved in its production.
Broader Effort to Curb Technological Advancement

These latest actions build upon sweeping export controls introduced in October, which aimed to slow China's technological and military progress. Those earlier controls restricted China's access to US chipmaking tools and certain chips produced globally with US equipment. The US government states that these measures are necessary to deny China access to advanced technologies, particularly as Beijing seeks to integrate its civilian and military sectors.
Additional Entities Targeted and Removed

In addition to the AI and memory chip companies, nine other Chinese entities are being targeted for allegedly supporting China's military modernization. Among them is Shanghai Micro Electronics Equipment Group Co Ltd (SMEE), China's sole lithography company. In total, 35 Chinese entities are being added to the trade blacklist. However, the Biden administration also plans to remove 26 Chinese entities from the "unverified list" following successful site visits, indicating a partial easing of restrictions for those companies.

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What is the US blocking with new chip industry sanctions?

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