Chinese companies helping Russia could be cut off from US equipment, Commerce secretary says

Chinese companies helping Russia could be cut off from US equipment, Commerce secretary says

Chinese companies that defy restrictions against exporting to Russia could be deprived of the US hardware and software they need to make their products, US Commerce Secretary Gina Raimondo said.

The United States could “basically shut down” Semiconductor Manufacturing International Corp or any Chinese company that defies US sanctions for continuing to supply chips and other advanced technology to Russia, he told The New York Times.

Washington is threatening to put companies on a trade blacklist if they circumvent new export restrictions against Russia, as it steps up efforts to keep a wide range of technology out of the country that invaded Ukraine last month.

If the United States found out that a company like SMIC is selling its chips to Russia, “we could basically shut down SMIC by preventing them from using our equipment and our software,” Raimondo said.

SMIC did not immediately respond to a request for comment.

In Beijing, a Foreign Ministry spokesman said China opposes any unilateral sanctions or limits by the United States, and urged that Washington’s policy towards Ukraine and Russia “does not harm China’s rights and interests.”

The spokesman, Zhao Lijian, said “China will take all necessary measures to resolutely uphold the rights of Chinese companies and individuals.”

Source: Gestion

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