Economy

US adds China’s YMTC and 30 others to ‘unconfirmed’ trade list

US adds China’s YMTC and 30 others to ‘unconfirmed’ trade list

By Karen Freifeld

WASHINGTON (Reuters) – The United States on Friday added YMTC, China’s largest memory chip maker, and 30 other Chinese entities, to a list of companies that U.S. officials were unable to screen, escalating tensions with Beijing and targeting a long-suffering company. of disturbances. Biden administration.

The new lists are the first in a series of new restrictions announced on Friday on technology exports to China aimed at blocking its military advance.

As Reuters exclusively reported on Thursday, the United States is also set to limit access to chip-making tools for Chinese companies including Yantze Memory Technologies Co (YMTC), while still allowing South Korean memory chip makers Samsung Electronics (OTC:) Co. Ltd and SK Hynix Inc. To obtain equipment for their operations in China.

US senators from both parties have called for YMTC, the fast-growing Chinese chip maker, to be placed on a trade blacklist known as the Entity List. The company, which was founded in 2016, is considered a “direct threat” to US chip companies by the Biden administration.

YMTC and the Chinese embassy in Washington did not immediately respond to requests for comment.

YMTC is under investigation by the Department of Commerce over whether it violated US export controls by selling chips to the blacklisted Chinese telecom company Huawei Technologies Co Ltd. , a major concern to US lawmakers and the Biden administration.

The companies were added to the unverified list because the United States was unable to complete field visits to determine if they could be trusted to receive sensitive technology exports from the United States.

US exporters must conduct more due diligence before sending goods to entities on the “unverified list,” such as the 31 added on Friday, and they may have to apply for more licenses.

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The United States removed a unit of Wuxi Biologics from the list Friday, which is good news for the ingredient maker of AstraZeneca’s COVID-19 vaccine (NASDAQ:). Reuters reported last summer that US officials were able to conduct a search at the Wuxi City site, a starting point for its removal from the list.

A spokeswoman for Wuxi Biologics said Friday that the company is pleased to remove the Wuxi site from the list, given the inspection in June. It added that the company was looking to schedule an inspection of its Shanghai branch, which was also placed on the unverified list in February.

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