Commerce Secretary Gina Raimondo issued a stern warning on Tuesday to Chinese companies that could defy US restrictions on exports to Russia, saying the United States would cut them off from US equipment and software they need to make their products. to make.
The Biden administration could “essentially shut down” Semiconductor Manufacturing International Corporation or other Chinese companies defying US sanctions by continuing to supply chips and other advanced technology to Russia, Ms Raimondo said in an interview with DailyExpertNews.
The United States, the European Union and other governments have imposed sweeping sanctions and export controls in response to Russia’s invasion of Ukraine. The export controls prohibit the sale of certain high-tech products, including advanced semiconductors, to Russia and Belarus.
US export controls do not only apply to US companies, but to companies around the world that use US software or technology to manufacture their products, including many Chinese companies.
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 invasion. But China doesn’t have the ability to make the world’s most advanced semiconductors, Ms Raimondo said, and Chinese companies that continue to supply Russia will face severe penalties.
Russia “will certainly court other countries to end our sanctions and export controls,” Ms Raimondo said. But if the United States were to discover that a company like Semiconductor Manufacturing International Corporation, in Shanghai, is selling its chips to Russia, “we could essentially shut down SMIC because we prevent them from using our equipment and our software.”† she said.
“They have their own interest in not supplying this stuff to Russia. So they don’t do it out of the goodness of their heart. It would be devastating to China’s ability to produce these chips† added Mrs. Raimondo.
The new export controls, enacted in coordination with the European Union, Australia, Japan, South Korea and other allies, are intended to stop the flow of advanced technologies into Russia to downgrade the Russian military and certain strategic sectors that President Vladimir V help. Putin retains control of Russia.
The United States took similar measures against Chinese telecom company Huawei in 2020, cutting it off from its global supply of chips and other electronics made with American technology. The measure ultimately crippled Huawei’s successful mobile and broadband operations.
