(VitalNews.org) – It appears that the Biden administration’s semiconductor industry sanctions have been ineffective and failed to prevent backdoor support from the US through a company associated closely with the Chinese military, raising questions about national security.
According to a report from Reuters, at least six different Chinese military suppliers are receiving semiconductor chip design services from a company called Brite Semiconductor, which is partly owned by Semiconductor Manufacturing International Corporation (SMIC), a chip manufacturing company backed by the Chinese government. SMIC is currently on the US entity list, which blocks the company from receiving certain goods and services from US suppliers.
The Chinese-backed chip manufacturer appears to have found a loophole around the American sanctions. The sanctions were implemented during an ongoing trading war between China and the US over which nation would control the semiconductor industry, which is directly tied to the development of consumer products, technological research, and military weapons systems. Also tied into the ongoing trade war is which nation controls the destiny of Taiwan, which produces the majority of the world’s most advanced semiconductors.
The managing director of Datenna, an open-source intelligence company, told reporters that the American company is “a classic example” of how “valuable semiconductor technology” can be funneled “to SMIC” and the Chinese military through “a US-China joint venture.”
The chip designer seems to be avoiding present U.S. sanctions that were put in place as a part of a trade war between the U.S. and China over the semiconductor industry due to its applications in both military and consumer aspects, as well as for technological research. Despite Brite’s access to US capital and resources, the company isn’t technically in violation of American sanctions.
In November, a Congressional Review Commission on US-China economic security asserted that the current US sanctions on the Chinese semiconductor industry are insufficient in preventing China from accessing sensitive technology that puts America at risk. Chinese firms find ways to evade the sanctions in order to obtain US technology through the backdoor from other nations.
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