YMTC and Other Companies Added to the Entity List

China Tech Threat Co-Founder Dr. Roslyn Layton issued the below statement following the U.S. Commerce Department’s announcement today that YMTC, a state-backed chip maker with close ties to the People’s Liberation Army (PLA), has been added to the Entity List, along with several other Chinese companies. 

“The addition of YMTC, a Chinese military-aligned chip maker, to the Entity List is long-awaited and critical from both national and economic security standpoints. With today’s announcement, the Bureau of Industry and Security (BIS) is putting a long-overdue focus on our national security under the leadership of Under Secretary Alan Estevez. Today’s news is a declaration that American security matters more than corporate profits. 

Blacklisting YMTC should be just a first step, as the effectiveness of this move could be limited by the toleration of gaping loopholes similar to those currently undermining restrictions on fellow chip bellwether SMIC. We urge BIS to remain vigilant that YMTC cannot circumvent today’s penalties. BIS should also continue to pursue an Entity List designation for other dangerous Chinese military chipmakers, such as CXMT, which, like YMTC, is a Chinese government-funded tool for weakening American security and prosperity.”

For more from Dr. Layton, see her latest Forbes column here.