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US blocks more Chinese tech firms on national security concerns
WASHINGTON, June 22, 2019 (BSS/AFP) – The US Commerce Department
blacklisted five Chinese tech entities Friday in a new move against Beijing’s
supercomputing industry likely to raise tensions ahead of a meeting between
President Trump and Xi Jinping next week.
The notice targets Sugon — a prominent Chinese supercomputer manufacturer
— along with three of its microchip subsidiaries and a computing institute
owned by the People’s Liberation Army.
All of the entities will be effectively barred from obtaining US technology
after the government determined they were “acting contrary to the national
security or foreign policy interests of the United States.”
Trade tensions between the world’s top two economies have spilled over into
the tech sector in recent months, with Trump’s administration moving to
essentially ban Chinese tech firm Huawei from the huge US market on security
grounds.
In May, it added Huawei to an “entity list” of companies barred from
receiving US-made components without permission from Washington, though the
company was granted a 90-day reprieve.
Facebook and Google have since both announced they will move to cut off
Huawei in order to comply with the US sanctions, further isolating the
Chinese tech giant.
Beijing has responded with threats to release its own blacklist of
“unreliable” foreign companies and individuals that appears aimed at
pressuring foreign companies to maintain commercial relations with Huawei.
Earlier this month, Beijing summoned executives from American firms Dell
and Microsoft and South Korea’s Samsung, among others, to warn them that any
moves to ramp down their businesses in China may lead to retaliation, The New
York Times reported.
Trump and his Chinese counterpart Xi are set to meet next week on the
sidelines of the G20 summit in Japan.
BSS/AFP/FI/ 1250 hrs