In the first such step by the Biden administration, the United States has blacklisted Chinese organisations accused of producing supercomputers for the Chinese military.
After being placed on the “entity list” by the US government, three firms and four divisions of China’s National Supercomputing Center are now prohibited from importing technology from the US without a licence.
It was claimed that the groups were involved in creating supercomputers used by Chinese “military actors” and assisting initiatives to manufacture weapons of mass destruction.
Gina Raimondo, the US commerce secretary, stated that “supercomputing capabilities are essential for the development of many—perhaps virtually all—modern military and national security systems, such as nuclear weapons and hypersonic missiles.”
Chinese military modernisation might be made more unstable if the United States uses its technology to help China’s destabilising military modernization ambitions, according to the president.
Tianjin Phytium Information Technology, Shanghai High-Performance Integrated Circuit Design Center, Sunway Microelectronics, and the National Supercomputing Center branches are among the Chinese companies involved in this project.
Fears about a shift in power in the Indo-Pacific region due to China having access to American military technology and field weapons are a major concern for America.
It was reported in the Washington Post earlier this week that Phytium has developed semiconductors based on US technology for use as power in the development of fast, hard-to-detect hypersonic missiles.
Cadence Design Systems and Synopsys were cited in a media report about Phytium. As a result, the two California-based companies would no longer be able to provide services and goods to the Chinese corporations. If the technology in question were to be manufactured in a location other than the United States, this would not prevent them from supplying Chinese organisations.
According to the Washington Post, Phytium contracted with Taiwanese semiconductor maker TSMC to produce its chips. TSMC is now the world’s most sophisticated semiconductor manufacturer.
The Financial Times earlier reported that the Trump administration had urged Taiwan’s government to stop TSMC from creating chips for Huawei, which it said were being used in Chinese weapons.
A prohibition on TSMC exporting chips to Phytium or the other Chinese groups would be imposed if the United States used the “foreign direct product rule,” which would have prohibited any foreign business using US technology, such as TSMC, from exporting to the entities on the entity list.
Export limitations on Huawei were tightened as a result of Trump administration use of that rule.
While Rep. Michael McCaul, R-Texas, applauded the action to include Phytium on the Entity List, the senior Republican on the House Foreign Affairs Committee, said it was just a “half-measure” because the FDP rule was not activated.
‘The lessons we gained from the Huawei company listing flaws must be integrated as regular operating procedures for our export control policy,’ McCaul stated.’
The German Marshall Fund’s Lindsay Gorman argued that Biden’s use of a tool that was regularly deployed by his predecessor “laid to rest” the notion that he would not be harsh on China by utilising it.
If a Trump administration favourite might be carried over to the Biden administration, Gorman said it was “an open tool.”
Trump added hundreds of Chinese firms to the list of entities, including Huawei, the maker of telecoms equipment, and SMIC, the manufacturer of semiconductors.
Many of Trump’s China-related moves are being reviewed by the Biden administration, including an order prohibiting Americans from engaging in Chinese enterprises that the Pentagon claims aid the People’ s Liberation Army. Additionally, the US is attempting to coordinate export curbs with allies in Asia and Europe.