The U.S. Commerce Department has added 140 Chinese technology companies to its “entity list,” restricting their access to U.S. technology. The list includes businesses in China, Japan, South Korea, and Singapore that make equipment for computer chips, chipmaking tools, and software. This move is aimed at preventing China from accessing advanced technologies that could pose a risk to national security. China’s Commerce Ministry has objected to the decision, calling it “economic coercion.” The expansion of the entity list comes as part of the Biden administration’s efforts to boost investments in semiconductor manufacturing in the U.S.
The new restrictions affect companies involved in semiconductor fabrication, equipment manufacturing, and investment. This move is seen as a way to impede China’s military modernization and weapons development programs. China has accused the U.S. of seeking “technology hegemony” and engaging in unfair trade practices by blocking Chinese companies like Huawei from accessing American suppliers. In response, China has ramped up its efforts to develop its own advanced computer chips.
The announcement of the expanded entity list caused Japanese chipmakers and equipment manufacturers’ stocks to soar, while Chinese companies, including Naura Technology Group and Piotech Inc., saw declines. The U.S. decision to restrict exports to Chinese technology companies has intensified the ongoing tech trade war between the two countries.
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