The United States Department of Commerce has revised its export administration regulations and added 37 new entities to the It has added its own blacklist which displays all foreign organizations that US companies cannot do business with. Many of the entities on the US blacklist include Chinese companies, including two influential ones: Longson Technology And Inspur Group. The list also includes various government agencies, national research centers, equipment manufacturers, and private software companies.
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Companies on the US blacklist are prohibited from even indirect communication
About half of the Chinese companies on the US blacklist have been sanctioned for their participation in nuclear and ballistic missile programs in China and other allied countries. Many of the remaining entities, including Loongson and Inspur, are accused of acquiring American technology on behalf of the People’s Liberation Army. China has confirmed that its military uses Longsun processors, which it banned from exporting to Russia last year to maintain its supply.
Entities on the blacklist are prohibited from purchasing or licensing US technologies, even indirectly. For example, Loongson can’t even manufacture their CPUs on American equipment, which makes most castings with modern nodes impossible. Of course, companies have the right to apply to the Department of Industry and Security for a license to sell their products to a blacklisted entity, but they cannot be given a chance at all.
Loongson has a small line of processors manufactured on the 12nm node with performance comparable to AMD and Intel processors from a few generations ago. However, they have managed to create a proprietary ISA (Instruction Set Architecture) using the same hardware called LoongArch implement that will reduce their dependence on foreign licenses. They are manufactured by state-owned SMIC (China’s largest chipmaker). Given that it is unlikely to be granted a license, if it continues to work with Loongson, SMIC risks losing its licenses and its US customers, including Broadcom, Qualcomm And Texas Instruments Is.
Another sanctioned company, Inspur, is also the third largest server provider in the world with 10% of the global market. The company is currently present in all areas of technology including artificial intelligence, data analytics, cloud computing and storage. They have already struggled after the United States passed a policy last September that made it difficult for Chinese companies to buy the latest hardware from American manufacturers, particularly AMD, Intel and Nvidia. But now motherboards, power supplies, SSDs, microcontrollers and other common computer components are at risk of being disrupted.
Earlier It was reported Chinese companies have been hoarding chipmaking equipment for the past few months in anticipation of these limitations and the future of their industry. This is just one in a series of US government attacks on China’s tech industry that began with Huawei four years ago and show no signs of slowing down. The attacks that have started since Trump’s time and his rival Joe Biden has no will to stop it. However, a large number of analysts have predicted that this model of sanctions against China, although it will hit them hard in the short term, but in the long term, it can lead to their faster progress.
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