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Donald Trump administration cuts Chinese supercomputer firms off from USA components

  • by Jerome Frank
  • in World News
  • — Jun 23, 2019
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All of the entities will be effectively barred from obtaining U.S. technology after the government determined they were "acting contrary to the national security or foreign policy interests of the United States". Developed by the US Department of Energy and the Argonne National Laboratory, this supercomputer - still in development - is called "Aurora with Intel".

The companies are Higon, Chengdu Haiguang Integrated Circuit, Chengdu Haiguang Microelectronics Technology, Sugon and Wuxi Jiangnan Institute of Computing Technology.

"The Entity List [.] identifies entities for which there is reasonable cause to believe, based on specific and articulable facts, have been involved, are involved, or pose a significant risk of being or becoming involved in activities contrary to the national security or foreign policy interests of the United States", according to the filing.

The fifth entity is the Wuxi Jiangnan Institute of Computing Technology, which Commerce said was owned by the People's Liberation Army's 56th Research Institute.

The ban affects AMD's Chinese joint venture THATIC, which was established in 2016.

The targeted companies include Higon too that is a joint venture partner of AMD.

In recent years, US and Chinese companies have been alternating as leading producers of the world's fastest supercomputers.

According to the NYT report, Sugon is one of "China's most important makers of high-performance computers and servers, with 10 out of the top 20 fastest supercomputers in China, according to China's TOP100 rankings in 2018".

President Trump added five more Chinese companies to the US blacklist. Last month, Commerce last month added telecommunications giant Huawei to it, heightening tensions with Beijing.

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Five more tech entities were blacklisted Friday and these were part of the Chinese efforts to develop supercomputers.

The commerce department said on Friday that since 2015, NUDT has procured items under the name Hunan Guofang Kei University using four separate, additional addresses not already on the entity list.

"The U.S.is gradually squeezing off access to United States technology for major elements of China's next generation supercomputing", said Triolo.

Today's action is the latest shot to be fired amid ongoing trade tensions between the United States and China.

Mr Trump has imposed 25 percent tariffs on US$250 billion in Chinese imports and is preparing to target another $300 billion, extending the import taxes to virtually everything China ships to the United States. China has retaliated with tariffs on USA products.

Talks to resolve the dispute broke off last month.

Experts say the move could complicate trade talks scheduled for next week between President Donald Trump and Chinese counterpart Xi Jinping. The US is tightening its restrictions on Chinese high-tech companies, as it has done to Huawei. "They can not be seen as making concessions to the United States, so this may have the effect of hurting any chances for trade agreement". It sends a signal that the Trump administration does not intend to compromise on its demands on China or accept China's attempts to renege on agreements it made in earlier negotiations.

Asia specialist Tami Overby, senior director at the McLarty Associates consultancy, said that "it seems odd" that the Trump administration would delay Pence's speech and then turn around and expand its tech blacklist.

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