Caught Red Handed: Applied Materials Allegedly Illegally Exporting Tech to China

For years China Tech Threat has warned that U.S. export controls have been insufficient to stop the transfer of American technology to the Chinese military. In our August 2023 report, Cash Over County, we explained how American semiconductor equipment manufacturers Applied Materials, KLA, and Lam Research grew their combined revenues from China by 103% between 2018 and 2022—strengthening the Chinese military and intelligence apparatuses in the process. Apparently, the greed infecting at least one of these companies is worse than we thought. Reuters reports that the Justice Department is investigating Applied Materials for allegedly selling hundreds of millions of dollars’ worth of equipment to China in violation of U.S. export controls. The alleged infractions took place in 2021 and 2022,… Read More

CTT Issues Memo In Advance of BIS Oversight Hearing: What is the Commerce Department’s Export Control Policy?

In advance of Bureau of Industry and Security (BIS) Under Secretary Alan Estevez’s appearance before the U.S. Senate Banking Committee July 14 hearing on export controls, China Tech Threat issued a memo to congressional staff and interested parties on BIS’ failure to apply China-related export controls. The memo highlights the potential dissonance between Estevez’s stated long-term priority to “stop [China] from using our technology against us” and Secretary Raimondo’s assertion that “selling a commodity product to a Chinese company is in and of itself not problematic.”  It also poses a set of key questions that would help clarify Commerce Department’s position on employing China-focused export controls:  Does the Commerce Department plan to impose export controls in response to the threat from YMTC? If not, why… Read More

CTT Requests Commerce Dept. Explain Policy Reversal

FOIA seeks disclosure of agency communications with top 3 chip machine makers WASHINGTON – China Tech Threat (CTT) called on Secretary of Commerce Gina Raimondo to clarify the agency’s position on export control enforcement and sales of American semiconductor manufacturing equipment (SME) to China. The request follows Sec. Raimondo’s recent public statements, quoted in news reports, that U.S. companies equipping Chinese government-owned and affiliated competitors is “not problematic.” CTT submitted a Freedom of Information Act (FOIA) request to obtain details of meetings Sec. Raimondo held with the CEOs of the top U.S. chip machine makers. Sec. Raimondo’s comments, including that “nothing is wrong” with U.S. companies selling SME to Chinese companies aligned with the Chinese military, contradict the Commerce Department’s… Read More