US adds Chinese technology companies to export blacklist

Huawei Technologies/Bloomberg

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The move follows the blacklisting of Chinese telecommunications giant Huawei last month, blocking it from buying US software and components that it needs to make its products.

Sunday 23, June 2019

(Bloomberg) --The US Commerce Department has barred five additional Chinese entities from buying American-made products, in a move that risks inflaming tensions ahead of President Donald Trump’s planned meeting with Chinese leader Xi Jinping to restart trade talks.

The Commerce Department stated that the entities were part of China’s efforts to develop supercomputers, adding that they raise national security concerns because the computers are being developed for military uses or in cooperation with the Chinese military.

Among those added to the blacklist were AMD’s Chinese joint-venture partner Higon, Sugon, as well as Chengdu Haiguang Integrated Circuit and Chengdu Haiguang Microelectronics Technology, both of which the department said Higon had an ownership interest in.

The ban affects AMD’s Chinese joint venture Tianjin Haiguang Advanced Technology Investment Company (THATIC), which was established in 2016. AMD uses THATIC to licence its microprocessor technology to Chinese companies including Higon.

THATIC, is a Chinese holding company, which provides provides chips to Sugon, a Chinese server and computer maker.

The blacklisting requires American companies doing business with the Chinese firms to get a licence from the US government in order to sell their products. The policy for granting such licences is that there is a presumption of denial of such a request, said the Commerce Department.

Similarly, the fifth entity is the Wuxi Jiangnan Institute of Computing Technology, which Commerce said was owned by the People’s Liberation Army’s 56th Research Institute.

According to Commerce Department, the 56th Research Institute’s mission is to support China’s military modernisation.

TAGS : Huawei Technologies , US-China Trade tension, tariffs , import ban

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