As the U.S.-China chip dispute escalates, Washington is reportedly planning to place chip maker Yangtze Memory Technologies and 35 other Chinese companies on its trade blacklist.
What Happened: The Joe Biden administration's decision would prevent these Chinese companies from buying certain American components, reported Bloomberg, citing a person familiar with the matter.
The report said the U.S. Department of Commerce would add these Chinese firms to a so-called ‘Entity List' as early as this week. The U.S. suppliers would then be required to seek a special license to ship even low-tech items to them.
The U.S. Department of Commerce did not immediately respond to Benzinga’s request for comment.
This came after reports on Tuesday indicated that China is reportedly planning a one trillion yuan ($143 billion) support package for its semiconductor industry to counter Washington’s sweeping export controls on chips.
Chinese President Xi Jinping's government also launched a trade dispute at the World Trade Organization against the U.S. over its chip export control measures, which it claims have "threatened the stability of the global industrial supply chains."
Meanwhile, Bloomberg’s report said China "appeared" to be cooperating with the U.S. authorities to prevent these firms from being added to the Entity List, including disclosure of certain information about the products and operations.
Check out more of Benzinga’s Europe and Asia coverage by following this link.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
