The U.S. Commerce Department has added 140 Chinese technology companies to its export control list, including those involved in chipmaking equipment and software. The move aims to limit China’s access to advanced technologies that pose national security risks. The companies listed will likely be denied export licenses for any U.S. business transactions. This decision is part of President Biden’s strategy to boost semiconductor investments in the U.S. and hinder China’s military modernization efforts and human rights repression.
China has criticized the move as economic coercion and protectionism, accusing the U.S. of pursuing technology hegemony. The U.S. has also extended its export controls to companies in South Korea, Taiwan, and Singapore, causing tensions with China. Consequently, China has ramped up efforts to develop its own advanced technologies to reduce reliance on American suppliers.
The announcement led to a surge in shares of Japanese chipmakers and related equipment manufacturers, reflecting investor optimism in the region. However, Chinese companies listed in the export control measure saw their stocks drop, indicating potential challenges ahead. This development highlights the growing tech rivalry between the U.S. and China, with implications for global trade and technological competition.
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