More than a dozen Chinese companies, including Chinese chipmaker Yangtze Memory, may be included in the U.S. Entity List as early as December 6.
According to a Reuters report, the U.S. Department of Commerce added 31 Chinese entities to the "unverified list" last month, including Yangtze Memory Technology Co., Ltd. The move heightened tensions between the US and China. According to the recently issued "Export Administration Regulations" (EAR) of the United States, companies included in the "Unverified List" may be included in the more stringent "Entity List" after 60 days.
The United States has also previously investigated whether YMTC violated US export control regulations due to YMTC's sale of chips to Huawei, a sanctioned Chinese technology giant.
Matthew S. Axel, assistant secretary of commerce for export controls, is scheduled to deliver a speech at the Institute of International Affairs next Monday. His prepared speech confirms that the new U.S. rules apply to YMTC and 30 other Chinese companies, as well as to those previously established. Another 50 businesses on the list.
The speech also said that if the United States fails to complete the end-use inspection of the above-mentioned enterprises by December 6, these companies will face the risk of being included in the entity list as soon as December 6.
YMTC and the Chinese embassy in the United States did not immediately respond to requests for comment.
U.S. exporters must conduct additional due diligence and may have to apply for additional licenses before shipping to entities on the "unverified list," the report said.
Once a company is placed on the Entity List, its U.S. suppliers must seek special licenses to ship even low-tech products to the company.
The heads of state of China and the United States met in Bali, Indonesia on Monday afternoon. This is the first face-to-face meeting between the heads of state of China and the United States since Biden took office as US president in January 2021.
Under the pressure of global peace and post-epidemic economic recovery under the impact of the Russia-Ukraine war, the international community has continued to urge China and the United States to improve their relations. Analysts believe that the holding of Xi's visit shows that the two major powers have responded to these calls.
