Several American companies have reportedly been asked by the Trump administration to halt sales of software to Chinese companies, particularly those used in the production of semiconductors.
According to the Washington Examiner, President Donald Trump is attempting to make it more difficult for China to access semiconductors to squash China’s efforts to advance artificial intelligence (AI).
On Wednesday, a Commerce Department spokesperson told CNN that the administration was reviewing exports that are of strategic significance to China.
“In some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending,” the spokesperson said.
The Financial Times reported the companies include Cadence, Synopsys, and Siemens EDA.
Former CIA China analyst Christopher Johnson told the outlet the move shows the “innate fragility of the tariff truce reached in Geneva. With both sides wanting to retain and continue demonstrating the potency of their respective chokehold capabilities, the risk the ceasefire could unravel even within the 90-day pause is omnipresent.”
A federal court largely halted Trump’s tariffs, including the high levies on Chinese imports. The Trump administration had been engaged in a heated trade dispute with China until both nations agreed to a temporary 90-day pause.
The pause offered relief to U.S. consumers, who have felt the brunt of soaring prices due to the 145% tariff imposed by the U.S. on Chinese goods. However, the ruling did not reach Trump administration’s tariffs on steel, aluminum, and cars.
Spokesman for the Chinese Embassy in the U.S., Liu Pengyu, told CNN that “China firmly opposes the US’s overstretching the concept of national security, abusing export controls, and maliciously blocking and suppressing China.”
“China will keep a close eye on relevant developments and take resolute measures to firmly defend the legitimate and lawful rights and interests of Chinese companies,” Liu added.
