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US to sanction Chinese semiconductor manufacturers

  • By Al Mayadeen English
  • Source: Agencies
  • 14 Dec 2022 16:24
2 Min Read

New US sanctions target 30 new Chinese businesses, including major semiconductor manufacturers.

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  • Simon Yang then CEO of Yangtze Memory Technologies (Cheng Ting-Fang)
    Simon Yang, the CEO of Yangtze Memory Technologies (Cheng Ting-Fang)

The US government plans to impose new restrictions on over 30 Chinese businesses this week, including semiconductor manufacturer Yangtze Memory Technologies Corp, by placing them on the trade ministry's blacklist.

In doing so, sanctioned manufacturers will be prevented from purchasing US components, Bloomberg reported on Wednesday.

The Bloomberg report stated that the sanctioned Chinese enterprises may only purchase US-made components after obtaining a special export authorization from the US Department of Commerce.

Chinese Foreign Ministry spokesperson Wang Wenbin said. according to the report, that the US government "politicized and weaponized economic cooperation."

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China hits back against US chip sanctions, files WTO complaint

China has filed a case with the World Trade Organization, hitting back against US export sanctions on microchips, further fueling the tech war between Washington and Beijing. 

On Monday, China's Ministry of Commerce said its WTO complaint was a legal and necessary measure to defend its "legitimate rights and interests. "

For context, in October, the US Department of Commerce introduced sanctions on China, putting hurdles in Beijing's way to buy or develop advanced semiconductors. 

“At a minimum, the case is about China pushing back on how it’s perceived as an unfair actor in the global trading world,” said Ben Kostrzewa, an expert on US-China trade relations at Hogan Lovells.

The complaint would mark the first step in a WTO mediation process, where the case would normally be put before the Appellate Body - however, the body has been suspended due to disagreements among member states. 

Read more: US sanctions on chips not to hamper China military capabilities

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