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US Will ‘Absolutely’ Cut Off Chinese Firms Busting Russia Sanctions

US Commerce Secretary Raimondo doubles down on threat to cut off access to US technology needed to make chips for any company helping Russia.


US Secretary of Commerce Gina Raimondo
US Secretary of Commerce Gina Raimondo. Photo: Reuters

 

US Commerce Secretary Gina Raimondo warned Chinese companies that the US will “absolutely” enforce export controls if they sell semiconductors made with US technology to Russia.

Raimondo went on to say the resulting export controls would “essentially shut them down”.

Raimondo said all Chinese semiconductor companies rely on US software to make chips, which makes them subject to export controls.

“If we find that they are selling chips to Russia, then we can essentially shut them down by denying them use of that software, and we’re absolutely prepared to do that,” she said.

President Joe Biden plans to announce a fresh package of sanctions on Russian political figures and oligarchs during emergency talks this week in Brussels with European and NATO leaders, national security adviser Jake Sullivan said on Wednesday.

The US is particularly concerned about China’s relationship with Russia, its failure to condemn the invasion, and US reports that Beijing is willing to provide military assistance to Moscow – all issues on the agenda during Biden’s meetings.

Beijing has described the sanctions imposed on Russia as increasingly outrageous, although it has also expressed concern about the war.

Raimondo said the US is monitoring for possible violations of its sweeping export controls on Russia “hour by hour, minute by minute,” and would crack down on any violations by any country as they occurred.

Asked whether Chinese firms were violating the controls so far, Raimondo said no, but noted that Commerce does not disclose investigations or enforcement actions before they are finalised.

The commerce secretary said Washington expected China to comply because the consequences would be severe and could hit any company, including Chinese semiconductor maker Semiconductor Manufacturing International Corp (SMIC).

“I’m not walking that back. I’m very consistent and clear,” Raimondo said.

 

  • Reuters, with editing by Neal McGrath

 

 

See also:

US Warns China Against Helping Russia as Sanctions Mount

Ignoring Western Sanctions ‘Would Imperil China’s Goals’

China-Led Development Banks Halt Russia, Belarus Lending

China, India Abstain from UN Vote Calling for Russia to Halt Invasion

 

Neal McGrath

Neal McGrath is a New York-based financial journalist. Neal started his career covering the Asia-Pacific region for the Economist Intelligence Unit, then joined Asian Business magazine. He's subsequently held a variety of editorial positions covering business, economics, finance and sustainability. Neal has lived and worked in Hong Kong, Singapore, Germany and the US.

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