China Denounces New US Chip Controls, Adds to Unreliable Entity List
China criticized new U.S. export controls over certain advanced AI chips released this week (see 2501130026) and announced its own set of export restrictions on American firms the next day, adding seven defense contractors to its so-called unreliable entity list.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The chip restrictions interfere in “normal trade” between the two countries and are an example of the U.S. “abusing export controls,” China’s Ministry of Commerce said Jan. 13, in response to a reporter's question at a regular press conference, according to an unofficial translation. The ministry noted that a range of American technology companies and industry groups also opposed the rules.
“The Biden administration has abused export control measures, seriously hindered normal economic and trade exchanges between countries, seriously undermined market rules and the international economic and trade order, seriously affected global scientific and technological innovation, and seriously damaged the interests of companies around the world,” it said, “including American companies.”
The ministry on Jan. 14 also added seven U.S. firms to its unreliable entity list for their involvement in arms sales to Taiwan, targeting Inter-Coastal Electronics, System Studies & Simulation, IronMountain Solutions, Applied Technologies Group, Axient, Anduril Industries and Maritime Tactical Systems, according to an unofficial translation. Those companies are now blocked from participating in import and export activities in China.
China said, also in response to a reporter's question, that the companies “participated” in arms sales to Taiwan or “carried out so-called military and technological cooperation” with Taiwan, “which seriously damaged China's sovereignty, security and development interests.”