The United States expands export restrictions on entities in China's chip and electronics sectors.

The U.S. Department of Commerce has added 123 entities to its "Entity List," including 42 Chinese enterprises and institutions. This move aims to restrict exports to these entities, particularly in the field of electronic components for chips and semiconductors. Chinese entities included on the list range from Fuman Microelectronics Group to Hytera.

The U.S. government's action is partly targeting Russia's drone programs and military industrial complex as part of its sanctions against Russia. Entities on the list require U.S. companies to obtain a license before exporting technology and products to them. The U.S. Department of Commerce applies a "presumption of denial" policy to Chinese entities, meaning licenses are generally denied.

Additionally, the U.S. Treasury Department and State Department have imposed sanctions on approximately 400 entities under the "Specially Designated Nationals" (SDN) list, including 42 Chinese entities and individuals. The sanctions target Chinese companies involved in machine tools and microelectronics, as well as entities assisting Russia in procuring ammunition and evading sanctions.

To date, over 1,300 Chinese entities have been placed on the U.S. "Entity List," covering cutting-edge technology sectors such as AI, chips, and quantum computing. U.S. Secretary of State Antony Blinken has emphasized that despite disagreements, dialogue between China and the U.S. is necessary to ensure mutual understanding while protecting investments, progress, and opportunities brought by trade.