U.S. adds YMTC, 30 other Chinese entities to 'unverified' trade list
Flags of U.S. and China are seen in this illustration picture taken August 2, 2022. REUTERS/Florence Lo/Illustration
WASHINGTON -The United States on Friday added 31 Chinese companies, including memory chip maker YMTC Yangtze Memory Technologies Co, to a list of entities U.S. officials could not inspect to verify that they can be trusted to responsibly handle sensitive technology exports.
The United States also removed nine entities from the "unverified list," including Wuxi Biologics, good news for the company that makes ingredients for AstraZeneca's COVID-19 vaccine. Wuxu Biologics' shares plummeted in February when it was placed on the list.
U.S. exporters must conduct additional due diligence before sending goods to companies on the list and may have to apply for more licenses.
The "unverified list" is also a potential stepping stone to a tougher trade blacklist from the Commerce Department, Friday's rule said.
YMTC, founded in 2016, is a rising power in manufacturing NAND memory chips and has been seen as a growing threat to national security and U.S. chip companies.
NAND flash memory chips store data in devices such as smartphones and personal computers as well as at data centers.
YMTC and Wuxi Biologics did not immediately respond to requests for comment.
