The US has added China’s YMTC and 30 other firms to its ‘unverified’ trade list.


Washington, October 7, 2011: The United States has added China’s top memory chip maker YMTC and 30 other Chinese entities to a list of companies that U.S. authorities have failed to investigate, ending a 60-day standoff with Beijing. It can result in severe penalties.

The new details are the first of a series of new restrictions announced Friday on technology exports to China aimed at curbing military advances. The crackdown included restrictions on access to chip manufacturing equipment for Chinese companies, including Yantze Memory Technologies Co (YMTC), as reported by Reuters a day earlier. Read more

U.S. senators from both parties have called for YMTC to be placed on China’s fastest-growing chipmaker’s trade blacklist, known as the “legal entity list.” In the year The company, founded in 2016, poses a “direct threat” to US chip companies, the Biden administration said.

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

YMTC is being investigated by the Commerce Department for violating US export controls by selling chips to blacklisted Chinese telecommunications company Huawei Technologies Co. Its chips are being evaluated by Apple Inc for inclusion in some iPhone computers in China. To US lawmakers and the Biden administration.

Companies have been added to the non-verified list because the United States has not been able to complete site visits to determine whether the United States can be trusted to accept exports of sensitive technology. US investigations into Chinese companies require the approval of China’s Ministry of Commerce.

U.S. shippers should take extra precautions before shipping goods to entities placed on the “unverified list,” such as those added on Friday, the 31st, and apply for additional authorization.

Under the Biden administration’s new policy, Washington would begin the process of adding entities to the list after 60 days if a government barred U.S. officials from conducting site inspections of companies on the unverified list.

The YMTC listing would further exacerbate tensions with Beijing and force US suppliers to seek hard-to-get permits from the US government before shipping even the most low-tech goods.

Not all of the measures announced on Friday were bad news for China. The United States has removed Wuxi Biologics, the maker of AstraZeneca’s COVID-19 vaccine ingredient, from the decertification list. Reuters reported last summer that U.S. officials were able to conduct an inspection of the Wuxi city site, which is a stone’s throw away from the list.

A spokesperson for Wuxi Biologics said the company was pleased that the Wuxi site was removed from the list during the June inspection. The company is looking forward to planning an inspection of the Shanghai branch, which was placed on the unconfirmed list in February, he said.

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Reporting by Karen Frifeld; Editing by Chris Gallagher, Chris Sanders, Chizu Nomiyama, Mark Porter and Richard Chang

Our standards: The Thomson Reuters Trust Principles.



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