Chinese companies helping Russia could be closed, trade


On Tuesday, commerce minister Gina Raimondo issued a stern warning to Chinese companies that may oppose US export restrictions to Russia, saying the US will cut off the American equipment and software they need to make their products.

In an interview with The New York Times, Raimondo said the Biden administration could “basically shut down” Semiconductor Manufacturing International Corporation or any Chinese company that opposes US sanctions by continuing to supply chips and other advanced technology to Russia.

The United States, the European Union and other governments have imposed extensive sanctions and export controls In response to the Russian invasion of Ukraine. Export controls prohibit the sale to and from Russia of certain high-tech products, including advanced semiconductors. Belarus.

US export controls apply not only to American companies, but to companies anywhere in the world, including many Chinese companies, that use American software or technology to manufacture their products.

China and Russia have strengthened their trade ties in recent years, and the Chinese government has expressed some solidarity with the Russian government despite the occupation. However, Ms. Raimondo said that China does not have the ability to make the world’s most advanced semiconductors, and Chinese companies that continue to supply Russia will face harsh penalties.

Russia will “definitely woo other countries to get them to circumvent our sanctions and export controls,” Ms Raimondo said. But if the United States learns that a company like Shanghai’s Semiconductor Manufacturing International Corporation is selling its chips to Russia, “we can basically turn off SMIC because we’re preventing them from using our equipment and software.said.

“It has its own interests not to supply these things to Russia. So they are not doing this out of the goodness of their hearts. It would be devastating for China’s ability to manufacture these chips.Miss Raimondo loved it.

The new export controls, issued in coordination with the European Union, Australia, Japan, South Korea and other allies, are designed to stop the flow of advanced technologies into Russia to disrupt the Russian military and certain strategic sectors that assist President Vladimir V. Putin is in control of Russia.

The United States took a similar action against Chinese telecom company Huawei in 2020, depriving it of global supplies of chips and other electronics made with US technology. The move crippled Huawei’s successful mobile and broadband businesses.



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