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Financial Times2 min read

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US Lawmakers Urge Ban on Chinese Memory Chips

US Lawmakers Urge Ban on Chinese Memory Chips

A bipartisan group of U.S. lawmakers has urged the Trump administration to ban Chinese memory chip manufacturers, citing national security concerns and unfair trade practices. The lawmakers expressed worries that Chinese companies could be forced to hand over sensitive technology to the Chinese government, posing a risk to American intellectual property and national security. This call comes amidst a global shortage of memory chips, which has impacted various industries, including consumer electronics and automotive manufacturing.

Specifically, the lawmakers are targeting companies like Changxin Memory Technologies (CXMT), a major Chinese producer of DRAM memory chips. They argue that allowing U.S. companies to purchase chips from CXMT would undermine efforts to build a secure and resilient domestic semiconductor supply chain. The U.S. government has been increasingly scrutinizing Chinese technology firms due to concerns about their ties to the Chinese Communist Party and potential espionage activities.

Adding to the complexity, Apple has reportedly been lobbying the U.S. government for clearance to purchase memory chips from CXMT. This lobbying effort is seen as an attempt by Apple to secure its supply chain during the ongoing global chip shortage. However, lawmakers argue that such a move would contradict U.S. national security objectives and could set a dangerous precedent for other American companies.

The push for a ban reflects a broader trend of increasing technological decoupling between the United States and China. The U.S. has implemented various measures to restrict China's access to advanced semiconductor technology, including export controls and sanctions on certain Chinese companies. The debate over CXMT highlights the tension between economic imperatives, such as securing supply chains during a shortage, and national security considerations.

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