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U.S. Blacklists More Chinese Tech Companies Over National Security Concerns The New York Times

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Blacklists More Chinese Tech Companies Over National Security Concerns The New York Times By and WASHINGTON — The Trump administration added five Chinese entities to a United States blacklist on Friday, further restricting Chinas access to American technology and stoking already high tensions as President Trump and President Xi Jinping of China prepare to meet in Japan next week The Commerce Department that it would add four Chinese companies and one Chinese institute to an entity list, saying they posed risks to American national security or foreign policy interests The move essentially bars the entities, which include one of Chinas leading supercomputer makers, Sugon, and a number of its subsidiaries set up to design microchips, from buying American technology and components without a waiver from the United States government The move could all but cripple these Chinese businesses, which rely on American chips and other technology to manufacture advanced electronics Those added to the entity list also include Higon, Chengdu Haiguang Integrated Circuit, Chengdu Haiguang Microelectronics Technology, and Wuxi Jiangnan Institute of Computing Technology, which lead Chinas development of high performance computing, some of which is used in military applications like simulating nuclear explosions, the Commerce Department said

It follows similar efforts to ban other Chinese tech companies from accessing American technology, including telecom equipment giant Huawei, which was added to the blacklist in May The administration is also considering adding Hikvision, a surveillance technology company, to the list, The addition of Chinese companies to the entity list could complicate the countries efforts to reach a trade deal The move comes just as American and Chinese officials have restarted trade talks after they collapsed in May and as Mr Trump and Mr

Xi prepare to meet next week at the Group of 20 meeting in Osaka, Japan The Trump administration has already imposed tariffs on dollar 250 billion worth of goods from China and is moving to add tariffs to an additional dollar 300 billion of Chinese products unless China agrees to a trade deal But a fast resolution is looking increasingly unlikely Both sides on remaining tough in further trade talks and the Chinese government has said it is putting together its own of foreign companies and people, an apparent first step toward retaliating against the United States for denying vital American technology to Chinese companies Sugon is one of Chinas most important makers of high performance computers and servers, with 10 out of the top 20 fastest supercomputers in China, according to Chinas TOP100 rankings in 2018

The immensely powerful machines serve entities including Chinas government and power weather prediction capabilities and its largest technology companies Most are also studded with American technology — in most cases the computers rely on a mix of microchips from Intel and Nvidia By placing the company on the list, the Trump administration would effectively cut it off from the tiny brains it needs to make the billions of calculations required to model weather patterns and support video apps and online shopping Also on the list was a Sugon subsidiary that had formed a partnership with the American chip maker Advanced Micro Devices to create microchips that could satisfy security demands for Chinese government customers Some Chinese officials said the chips could be used in

By relying on chips made by AMD and Intel, Sugons supercomputers are able to run a wider array of software than some of the countrys faster computers built around domestically produced chips With just over dollar 1 billion in revenue last year, Sugon is tiny compared to Huawei, which was placed on the entity list last month Still, its exclusion from American technology will represent an especially bitter pill for Beijing to swallow, as its supercomputers form the core of some of the Chinese governments most sensitive and important systems Sugon supercomputers support State Grid, the monopoly that runs Chinas electric grid; China Mobile, the countrys largest telecom services provider; and the China Meteorological Administration, which runs weather prediction It also makes data centers for companies like e commerce giant JD

com and Bytedance, the owner of social media app TikTok The companies could still obtain a license to purchase American technology But their presence on the list suggests that they would receive intense scrutiny, and such an approval might be unlikely

Source: Youtube

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