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Commerce Secretary Gina Raimondo said the move was intended to impair China's ability to use advanced technologies that “pose a risk to our national security.” “The purpose of these Entity List actions is to stop PRC companies from leveraging U.S. technology to indigenously produce advanced semiconductors,” Matthew S. Axelrod, the assistant secretary for export enforcement, said in a statement. “By adding key semiconductor fabrication facilities, equipment manufacturers, and investment companies to the Entity List, we are directly impeding the PRC’s military modernization, WMD programs, and ability to repress human rights.
Pressure from Washington has spurred China to step up its efforts to develop its own advanced computer chips and other technologies, providing billions in subsidies and investments for the industry. Chinese manufacturers have made quick progress even though they remain years behind in some areas.