According to people familiar with the matter, U.S. senators from both parties are vigorously lobbying to ban the U.S. government from doing business with Chinese chip manufacturers, further put pressure on industries related to the Chinese Communist Party, and decouple the economies of the two world powers.
"Politico" (Politico) reported that according to three people familiar with the matter, the Democratic leader of the US Senate Chuck Schumer (Chuck Schumer) and Republican Senator John Cornyn (John Cornyn) hoped to include their proposed amendments in this year's "National Defense Authorization Act (NDAA) Final Version.
The action would expand Section 889, which already prohibits government agencies from having business relationships with Chinese telecommunications companies or contractors using Chinese technology, and the new amendment would prevent the federal government from obtaining semiconductor products or services made by Chinese companies.
In 2019, the US National Defense Authorization Act passed Section 889 for the first time, targeting Chinese companies such as Huawei and ZTE. The measures promoted by Schumer and Corning will expand the target list to include companies such as SMIC, Yangtze River Storage and Changxin Storage.
The U.S. Senate and House of Representatives are debating the final version of the National Defense Authorization Act. It is not clear whether the Schumer-Corning proposal will pass, but both parties in the U.S. support restrictions on the federal government’s business dealings with Chinese companies.
