The United States has blacklisted seven more Chinese tech companies due to national security concerns. These are companies that develop supercomputers.
The Ministry of Commerce blacklisted the companies for “building supercomputers used by China’s military to modernize the military and its weapons of mass destruction development program”.
The US has long accused Chinese companies of being loyal to the People’s Republic and passing on sensitive information. The Chinese Communist Party said earlier that it does not deal with industrial espionage.
“Supercomputing is vital for the development of many – perhaps almost all – modern weapons and national security systems, such as nuclear and hypersonic weapons,” said US Trade Secretary Gina Raimondo. “The department will do everything in its power to prevent China from using American technologies to support these destabilizing military modernization efforts.”
The new rules limit US exports to the companies in question. The measures will enter into force immediately, but will not apply to goods from US suppliers already on their way to China. Because of the restrictions, the seven companies are not completely excluded from American technology. The seven companies are: Tianjin, Phytium, Information Technology, Shanghai is a High-Performance Integrated Circuit Design Center, a Fine Microelectronics and National Supercomputing Center in Jinan, Shenzhen, Wuxi, and Zhengzhou.
Under former President Donald Trump, the US has added numerous Chinese companies to their economic blacklist. Among those companies is Huawei, which is subject to even stricter sanctions.
Also, Xiaomi, the number three smartphone manufacturer in the world, was blacklisted by the US in January with companies allegedly associated with the Chinese military. A US judge temporarily abandoned trade restrictions against Xiaomi in March.