The Most Dangerous Chinese Company You Haven’t Heard Of

While Chinese companies like Huawei and TikTok have grabbed headlines for threatening American national security and data privacy, the Chinese chipmaker CXMT is less well-known. That doesn’t make it any less dangerous. Founded in 2016, Changxin Memory Technologies (CXMT) was created as a “pilot demonstration” of the Made in China 2025 initiative – the Chinese government’s effort to make China the world leader in high-tech manufacturing. Like fellow would-be state champion chipmakers SMIC and YMTC, CXMT is awash in Chinese subsidies. The company’s strategy relies on IP theft to close ground against competitors.  It also has multiple business leaders also serving in important Communist Party roles and connections to the PLA. As China’s largest maker of DRAM (dynamic random-access memory)… Read More

BIS Leader Previews New Civil Penalties for Export Control Violations

The Commerce Department’s Bureau of Industry and Security’s (BIS) Assistant Secretary for Export Enforcement, Matthew Axelrod, sounded all the right notes at a speech to the Society for International Affairs on May 16th. Recognizing that adversaries like Russia and China advance their own interests at the expense of the United States, Axelrod previewed strengthened civil penalties from BIS designed to deter American firms from violating export control laws. The proposed new penalties include: BIS publicly disclosing which companies it investigates for export control violations when a case opens, not when it is resolved, often years later Forcing companies to admit wrongdoing if they are found to have violated export control laws Increasing financial penalties for violations These ideas are welcome… Read More

YMTC Threat Continues to Grow; American Companies May Be Breaking U.S. Law

The Financial Times reports that the U.S. government is examining whether YMTC, a Chinese state-owned semiconductor manufacturer with deep ties to the Chinese military, is supplying Chinese telecom giant Huawei with chips for its 20e phone. If true, that relationship poses enormous legal risk for American companies currently doing or hoping to do business with YMTC, including Apple. For more, visit China’s Army to infiltrate iPhones with YMTC Chips. To recap: Huawei is currently subject to U.S. export controls over concerns its technologies will be used to surreptitiously collect user data and feed it back to the Chinese government. If YMTC is in fact found to be supplying Huawei with chips made with help from American tech firms like Lam… Read More