The US Commerce Department set off alarms in Beijing with last week’s addition of Chinese entities to an export watchlist, as the move tightened the stranglehold on China’s technological supply chain by hitting at its most vulnerable parts, the SCMP said on Sunday. The US added 33 mostly hi-tech firms, such as those that make laser parts and pharmaceuticals, research labs and two universities – to its unverified list, because of its inability to verify end-users. Companies on the list must supply more documents and be subject to other checks to deal with US suppliers.
The move has “created new shocks to the stability of the supply chain,” said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, the paper said, adding that the list would create a wedge in bilateral cooperation, as it would “adversely affect future international economic cooperation and harm the interests of all parties.”
See the full report: South China Morning Post.