US To Put More 5 Chinese Tech Companies Into Blacklist

Anil - Jun 22, 2019


US To Put More 5 Chinese Tech Companies Into Blacklist

Those five Chinese tech companies are prevented from buying components made in the US, especially chipset-related products.

Following the ban on Huawei, the US government has already made other Chinese tech firms into its blacklist. Those additional China-based names include Wuxi Jiangnan Institute of Computing Technology, Chengdu Haiguang Microelectronics Technology, Chengdu Haiguang Integrated Circuit, Sugon, and Higon, according to the filling spotted last week by CNBC. Sharing the same circumstance with the behemoth Huawei, they were added to the US's "entity list" due to national security concerns.

tech China

Five tech companies are prevented from buying components made in the US, especially chipset-related products. One of them, Sugon, has computers with military users. Another is Wuxi Jiangnan, which is owned by the 56th Research Institute of the General Staff of China People's Liberation Army. As the filing noted, they have the responsibility of helping China's military in modernization. The filing further unveiled that two companies now lead China's exascale high-performance computing development.

tech china company

On the other hand, Higan develops integrated circuits, electronic information systems, software and computer system integration, while the Chengdu entities design X86 architecture chips and produce integrated circuits.

Apart from being named on the US's blacklist last month, Huawei has been charged with the accusation of close-tied relationship with the Chinese government, as President Trump signed an executive order essentially banning it in light of national security concerns. However, the company repeatedly denied. A few days ago, CEO Ren Zhengfei said he is not too concerned about the loss, which is expected to reach a total of $30 billion in revenue as a consequence of the decisions on the US side.

tech huawei

At this time, there're a number of vendors of Huawei have been fleeing away: Google no longer supports Android OS updates for Huawei smartphones, and Amazon Japan will not put Huawei products for sale anymore. As a result, the Chinese giant announces it is developing a homegrown OS, dubbed "Hongmeng" or "Oak" for its smartphone lineup. However, Microsoft said it "will continue to respond to the many businesses, technical and regulatory complexities", when starting to sell Huawei's MateBook laptops earlier this week.

CNBC pointed out that several chip manufacturers in the US had to see a slight fall in stock prices, with Nvidia, Xilinx, and AMD respectively down by 1%, 2,2%, and 2%.

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