The US has blacklisted 140 Chinese technology companies.

The latest effort by the US aims to thwart Beijing's chip manufacturing ambitions. Washington's move has already impacted numerous Chinese chip manufacturers such as Piotech, ACM Research, and SiCarrier Technology. The US is also targeting shipments of advanced memory chips and various chip manufacturing tools destined for China.

This move is one of the last large-scale efforts by U.S. President Joe Biden to prevent China from accessing and manufacturing chips to develop artificial intelligence for military purposes.

The US imposes restrictions on China's chip industry. (Photo: Reuters)

This event took place more than a month before the inauguration of President-elect Donald Trump. The package of restrictions included an order limiting the export of high-bandwidth memory (HBM) chips to China, which are crucial for high-end applications such as AI training; an order limiting the export of 24 chip manufacturing tools and three other software tools; and an order limiting the export of chip manufacturing equipment produced in countries such as Singapore and Malaysia.

US Commerce Secretary Gina Raimondo said the action was aimed at preventing "China from advancing its domestic semiconductor manufacturing system, which is used to support the modernization of its military."

These controls could harm numerous American companies such as Lam Research, KLA, and Applied Materials, as well as overseas companies such as the Dutch equipment manufacturer ASM International.

In addition, Chinese companies face new restrictions, including nearly 20 semiconductor companies, two investment firms, and more than 100 chip manufacturing tool manufacturers. This includes Swaysure Technology Co., Si'En Qingdao, and Shenzhen Pensun Technology Co., which partner with China's Huawei Technologies. This leading telecommunications equipment manufacturer is hampered by US sanctions and is a hub for advanced chip manufacturing and development in China.

These companies will be added to a restricted list, prohibiting U.S. suppliers from delivering goods to them without prior special authorization.

When asked about the restrictive measures, Chinese Foreign Ministry spokesperson Lin Jian said that the US's actions undermine the international economic and trade order and disrupt global supply chains. China will take various measures to protect the rights and interests of domestic companies.

China's Ministry of Commerce also described the new restrictions as a clear example of " economic coercion" and "non-market practices."

Kong Anh (Source: Al Jazeera)

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