Zinger Key Points
- The U.S. Bureau of Industry and Security adds more than 50 entities based in China to the Commerce Department's Entity List.
- Enhanced export restrictions come as President Trump raises tariffs against China-made goods as tensions between the U.S. and China climb.
- Markets are swinging wildly, but for Matt Maley, it's just another opportunity to trade. His clear, simple trade alerts have helped members lock in gains as high as 100% and 450%. Now, you can get his next trade signal—completely free.
The Trump Administration announced on Tuesday that it has added more than 50 Chinese organizations to an export restriction list in an effort to hamper the development of China’s advanced AI, semiconductors and supercomputing capabilities.
The Details: The U.S. Bureau of Industry and Security added more than 50 entities based in China to the Commerce Department’s Entity List, prohibiting exports to those organizations without an approved permit.
The move aims to curb China's military modernization and hypersonic weapons development by restricting access to U.S. technology, including advanced semiconductors made by Nvidia Corp. NVDA and Advanced Micro Devices, Inc. AMD.
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"We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives," said U.S. Secretary of Commerce Howard Lutnick.
"We are committed to using every tool at the Department's disposal to ensure our most advanced technologies stay out of the hands of those who seek to harm Americans. At the same time, we will continue to drive American innovation, ensuring that our nation's economic strength remains unparalleled," Lutnick added.
The latest additions to the export controls list marks the first such move under the Trump administration and expands on the sweeping export controls placed on China by the Biden administration.
Alex Capri, a senior lecturer at the National University of Singapore, told CNBC that the move is intended to "cast an ever-widening net aimed at third countries, transit points and intermediaries."
"U.S. officials will continue to step up tracking and tracing operations aimed at the smuggling of advanced semiconductors made by Nvidia and Advanced Micro Devices," Capri added.
The enhanced export restrictions come as President Donald Trump amplifies tariffs against China-made goods as tensions between the U.S. and China increase.
The Chinese embassy in Washington, D.C. told Reuters that it opposed “these acts taken by the US and demand that it immediately stop using military-related issues as pretexts to politicize, instrumentalize and weaponize trade and tech issues.”
China is fighting back with new energy efficiency standards for advanced chips, which could block Chinese firms from purchasing Nvidia's top-performing processors if enforced rigorously.
China's economic planning agency, the National Development and Reform Commission urged domestic companies to adopt chips that comply with these strict requirements for new data centers and facility upgrades.
Nvidia's H20 chip—a downgraded variant designed to comply with U.S. export restrictions—currently falls short of the NDRC's updated criteria.
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