ASIATODAY.ID, BANGKOK – The US Department of Commerce has expanded the list of Chinese technology companies subject to export controls. The US added 140 new companies, most of them based in China.
Several Chinese-owned companies located in Japan, South Korea and Singapore are also included in the list. This new rule prohibits the export of high-bandwidth memory chips to China, which are used in advanced applications, as reported by AP News, Tuesday, December 3, 2024.
China responded to this move with protests, calling it a form of “economic coercion”. China views this as an attempt by the US to dominate global technology.
US Secretary of Commerce, Gina Raimondo, stated that this step was aimed at maintaining US national security. This goal is achieved by inhibiting China’s ability to access advanced technology that could pose risks to US security.
Companies on the list will have difficulty obtaining export licenses from the US, and will affect China’s semiconductor production and development.
Washington has expanded these export controls along with efforts to support domestic semiconductor development. These efforts are also part of the national economic and security strategy.
Assistant Secretary for Export Enforcement Matthew S. Axelrod explained, the goal of adding these companies is to stop Chinese companies from taking advantage of US technology. The technology can be used to produce advanced semiconductors.
These semiconductors have the potential to support China’s military modernization, weapons of mass destruction programs and human rights abuses.
China considers this step to further increase tensions in the technological competition between the two countries. In response to this US move, China accelerated the development of independent semiconductor technology. Despite rapid progress, Chinese chip manufacturers still lag behind in some areas of advanced technology.
Meanwhile, shares of chip manufacturing companies in Japan, such as Advantest and Tokyo Electron, experienced a significant jump after this announcement. On the other hand, shares of Chinese semiconductor companies such as Naura Technology Group and Piotech Inc. actually decreased.
This step further exacerbates tensions between the US and China in global technology competition.
Export controls have become a strategic tool for the US to limit China’s influence in the development of advanced semiconductor technology. This also shows US efforts to strengthen domestic technological independence and limit China’s ability to access technology to support its military ambitions. (ATN)
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