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The Biden administration is set to put chipmaker Yangtze Memory Technologies on a trade blacklist, in the latest US effort to target Chinese technology companies that it believes threaten its security.
The US commerce department will place YMTC and other Chinese companies on its “entity list” as early as this week, according to three people familiar with the plan.
US groups are barred from selling technology to companies on the list unless they have a hard-to-obtain export licence. The move comes two months after the US unveiled harsh export controls that made it more difficult for China to acquire and produce cutting-edge semiconductors.
The Financial Times reported this year that YMTC appeared to have violated US export controls by supplying Chinese telecoms equipment maker Huawei with Nand memory chips for its smartphones. US lawmakers have for months been pressing the Biden administration to put the company on the entity list.
Lawmakers had also warned Apple that it would face harsh scrutiny if it proceeded with a plan to buy YMTC chips.
Five more stories in the news
1. China stops counting asymptomatic cases As China’s Covid crisis deepens, it will stop counting asymptomatic Covid-19 cases but accelerate vaccinations as the world’s most populous country is hit by an uncontrolled coronavirus outbreak.
2. Beijing withdraws diplomats over Manchester consulate assault China has withdrawn six UK diplomats, ahead of their likely expulsion following an attack on a pro-democracy protester in the grounds of the Chinese consulate in Manchester.
3. Fed raises rates by a half point The Federal Reserve has raised its benchmark policy rate by half a percentage point and signalled its intention to keep squeezing the US economy next year, as central banks on both sides of the Atlantic enter a new phase in the battle against inflation. The pivot to smaller rate rises is likely to be followed internationally.
4. Qatar wooed EU lawmakers ahead of World Cup Qatar offered European lawmakers World Cup tickets, free trips to the Gulf state and other valuable hospitality as it sought to persuade them to soften their criticism of its treatment of workers ahead of the football tournament.
5. Goldman weighs bonus cut at investment bank Goldman Sachs is considering shrinking the bonus pool for its more than 3,000 investment bankers by at least 40 per cent this year. The prospect of the deep cuts has fed fears that the bank could face high staff turnover in the new year, according to people familiar with the matter.
The day ahead
China and US retail sales and industrial production figures Data for November is set to be released today. China retail sales are likely to show a hit from recent Covid lockdowns.
Japan trade balance data November figures will be released this morning. Last month, figures from October showed a larger-than-expected trade deficit. (CNBC)
New Zealand Q3 GDP figures Fresh gross domestic product figures are expected to show that the nation’s economy continued to grow in the year through September 30 however economists predict a recession in 2023. (NZ Herald, Reuters)
Bank of England rate-setting meeting Most economists expect a 0.5 percentage point increase today to 3.5 per cent as the BoE battles continued inflationary pressures. UK inflation dipped to 10.7 per cent in November.
What else we’re reading
The world can be a better place Martin Wolf is veering on the side of optimism in his must-read column, but argues that it’s time we learnt to move faster to deal with all the challenges we face.
‘Fraud in shorts and T-shirts’ The wheels of American justice do not turn nearly so fast as the cryptocurrency markets. But they’ve now caught up to Sam Bankman-Fried, the boy king of the shattered FTX empire who stands accused of perpetrating one of the largest financial frauds in US history. Don’t miss Joshua Chaffin’s breakdown of Bankman-Fried’s chaotic week.
Russia’s wartime economy: learning to live without imports When the heaviest sanctions against Russia were first introduced, some analysts predicted the economy’s rapid collapse, perhaps by as much as 30 per cent. Instead, what has emerged is a steady degradation of the country’s productive capacity which economists argue is pushing the country back decades.
A tale of cancer care Medical issues are the leading cause of personal bankruptcy in the US. Invisible pricing in the American healthcare market means a heady and expensive roulette, which many stand to lose, writes Claire Bushey, reflecting on the cost of breast cancer treatment.
Short sellers enjoy end of ‘fantasy’ stock market Short sellers have had plenty to be grateful for in 2022 — falling stocks, the abrupt end of easy money and a historic energy crisis. But what’s the outlook for 2023? Laurence Fletcher explains.
An artistic renaissance
Artists are returning to the eternal source of inspiration that is the Renaissance, writes Louis Wise. But while a new generation is honouring the styles, subjects and forms of the late 14th, 15th and 16th centuries, they are also modernising them with little twists — as you can see.
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