- The Bureau of Industry and Security of the U.S. Department of Commerce added 35 more entities to the Entity List.
- The department claims that Loongson and Inspur are supporting the modernization of the Chinese People’s Liberation Army.
- U.S.-based producers and foreign companies that use American technologies should obtain an export license from the department.
The U.S. Department of Commerce announced that CPU designer Loongson and server maker Inspur are now on the blacklist. The department alleged that 37 entities acquired U.S.-origin items to support China’s military modernization efforts. Blacklist will limit these companies’ access to technologies originating from the U.S. U.S.-based hardware, software, and services producers, and foreign companies that are using American technologies should obtain an appropriate export license from the U.S. Department of Commerce from now on.
The document doesn’t disclose how these companies are tied to the Chinese military, however, all Chinese companies are obliged to adhere to Chinese government decisions. Chips that are designed in China use U.S.-origin electronic design automation tools and they are also made with tools that are produced in the USA. This means that from now on, Loongson’s EDA and chip fabrication partners should apply for an export license to the U.S. Department of Commerce to be able to work with Loongson.
The decision will also affect Inspur, AI, big data, cloud computing, servers, and storage solutions providers. The company relies on chips designed by tech giants, including Intel and Nvidia. From now on, Inspur’s suppliers should obtain export licenses for all components and software they sell to Inspur, such as memory modules, storage devices, network controllers, NVMe/SAS/RAID controllers, and software. The Bureau of Industry and Security of the U.S. Department of Commerce stated,
« The ERC determined to add 4Paradigm Technology Co.; Inspur Group Co., Ltd.; Loongson Technology; National Research Center for Parallel Computer Engineering and Technology; Qingdao National Laboratory of Marine Science and Technology; Wuxi Institute of Advanced Technology; to the Entity List for acquiring and attempting to acquire U.S.-origin items in support of the China’s military modernization efforts. This activity is contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. All of these entities will require a license for items subject to the EAR, which will be reviewed under a presumption of denial. They are also given a footnote 4 designation, which means that “items subject to the EAR” for the purpose of these license requirements include foreign-produced items that are subject to the EAR pursuant to § 734.9(e)(2) of the EAR. »
The Bureau of Industry and Security is amending the Export Administration Regulations (EAR) by adding 37 entities under 38 entries to the Entity List. These entities are listed under the destinations of Belarus (1), Burma (3), the People’s Republic of China (China) (28), Pakistan (4), Russia (1), and Taiwan (1). Some entities are added under multiple entries, accounting for the difference in the totals. This final rule also modifies 10 existing entries on the Entity List under the destination of China.