According to people familiar with the matter, the Biden administration in the United States is preparing to put Chinese memory company Yangtze River Memory and dozens of other companies on a trade blacklist, so these companies will not be able to buy certain American components. It would be the latest U.S. crackdown on Chinese technology companies.
The British Financial Times quoted three people familiar with the matter as reporting that the U.S. Department of Commerce would include Chinese companies such as Yangtze River Storage in its "entity list" as early as this week; Chinese companies include Yangtze River Storage and 35 other companies.
Companies on the Entity List are not allowed to buy technology from U.S. suppliers unless they obtain a special export license from the U.S. Department of Commerce.
A representative for YMTC declined to comment.
This move will be the latest escalation in the technological conflict between the United States and China. The Biden administration unveiled tough export controls against China in October, imposing sweeping restrictions on China's ability to buy semiconductors and chip-making equipment, and at the time listed YMTC and other companies as "unverified "List, set a 60-day deadline for companies to allow the United States to carry out investigations, otherwise they will face the risk of being included in the Entity List.
Recent news has shown that the Chinese government is apparently cooperating with the US authorities to prevent YMTC and other companies from being included in the Entity List. This involves working with the U.S. government to disclose certain information about the company's products and operations.
The Financial Times reported this year that YMTC apparently violated U.S. export regulations by supplying NAND memory chips for smartphones made by Chinese telecommunications equipment maker Huawei. Separately, YMTC has been hoarding foreign chipmaking equipment for months in anticipation of the Biden administration preparing to take action against the company.
Members of the U.S. Congress have been pressuring the Biden administration for several months to include YMTC in the list of trading entities. They also warned that Apple will be strictly scrutinized if it promotes plans to purchase chips from YMTC.
