[ad_1]
According to the South China Morning Post, the U.S. Department of Commerce’s Bureau of Industry and Security has added Sitonholy, a leading Chinese solutions provider that sells hardware, specifically Intel and Nvidia processors, to its Entity List. U.S. companies dealing with distributors must obtain an export license from the U.S. government. While this is undoubtedly a blow to Sitonholy, it’s also a major blow to U.S. companies including Intel and Nvidia.
Sitonholy is an enterprise solution provider and cloud service provider from China. It sells hardware (with added value) and provides cloud services (including gaming services) based on Intel and Nvidia technology. As a result, U.S. companies dealing with Sitonholy must now obtain export licenses from the U.S. Department of Commerce’s Bureau of Industry and Security, which will review these applications with a presumption of denial. This is a major blow to Xitonghaoli, given that Chinese industry is hardly prepared to replace American technology with domestic products. However, it is also a major blow to U.S. companies, as China is an important market for companies such as AMD, Intel and Nvidia. At the same time, this isn’t a huge blow, as Xitonghaoli is one of the U.S. tech giant’s many partners in China.
The U.S. government this week placed four Chinese companies on an export blacklist because they are involved in purchasing artificial intelligence chips for the Chinese military, export enforcement official Kevin Curran said at a U.S. Senate subcommittee hearing. The specific newly added Chinese companies are Linkzoll Technology, Xi’an LeCroy Innovation Information Technology, Beijing Anzhi Technology, and Xitong Haoli (Tianjin).
In response, a spokesperson for the Chinese Ministry of Foreign Affairs criticized the United States for using export controls to unfairly target Chinese companies and urged the United States to stop politicizing trade and technology issues. This was a common response.
Separately, the United States has imposed restrictions on five other companies accused of helping produce and procure drones used by Russia in Ukraine and by Iran-backed Houthi rebels in attacks in the Red Sea. The companies include Jiangxi Xintuo Enterprise and Shenzhen Jiasibo Technology, which have been linked to military operations in Russia and Iran.
The actions against these companies underscore the ongoing strategic competition and security concerns that dominate U.S.-China relations. These developments come against the backdrop of China’s increasing military investment, as President Xi Jinping strives to build a “world-class” military by 2050.
[ad_2]
Source link