Washington: The U.S. Commerce Department is reportedly considering expanding its list of sanctioned Chinese firms, potentially placing ChangXin Memory Technologies (CXMT) and other major tech companies on the Entity List, according to a person familiar with the matter.
The Bureau of Industry and Security (BIS), which oversees U.S. export control regulations, is also evaluating the inclusion of subsidiaries of Semiconductor Manufacturing International Corporation (SMIC) and Yangtze Memory Technologies Co. (YMTC), the source said.
The Financial Times, which first reported the development, noted that the timing of the potential additions is being complicated by an ongoing trade agreement between the U.S. and China. Any formal move could carry significant diplomatic and economic implications.
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Placement on the Entity List restricts companies from receiving U.S. goods, software, and technology without a special license—permissions that are typically denied. The measure is employed against entities believed to be acting contrary to the national security or foreign policy interests of the United States.
In January, the Biden administration added over two dozen Chinese firms to the Entity List. These included Zhipu AI, a major player in large language model development, and Sophgo, whose chip—manufactured by TSMC—was allegedly used in a Huawei AI processor in violation of export restrictions.
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At that time, the Commerce Department also introduced stricter controls aimed at curbing the flow of advanced semiconductors to China, particularly to prevent re-routing or unauthorized use by sanctioned companies like Huawei.
As the U.S. continues to tighten its grip on advanced technology exports, the possibility of additional blacklisting may further strain already sensitive U.S.-China relations and impact the global semiconductor supply chain.
