The secretary of commerce warned Chinese companies that the United States would cut them off from American equipment and software if they exported to Russia.
The Biden administration could shut down Semiconductor Manufacturing International Corporation if it continued to supply chips to Russia, Ms. Raimondo said in an interview with The New York Times.
The United States, the European Union and other governments have imposed sanctions against Russia in response to the invasion of Ukraine. The export controls prohibit the sale of certain high-tech products to Russia.
The U.S. export controls apply to any company in the world that uses American software or technology to manufacture their products, which include many Chinese companies.
Despite the invasion of Russia, the Chinese government has expressed its support for the Russian government. China does not have the ability to make the world's most advanced semiconductors, and Chinese companies that continue to supply Russia will face harsh penalties.
Russia is going to be courting other countries to do an end run around sanctions and export controls. If the United States found that SMIC was selling its chips to Russia, we could shut them down.
They don't want to give this stuff to Russia. They aren't doing it out of the goodness of their hearts. China's ability to produce these chips would be devastating.
The new export controls, which were issued in coordination with the European Union, Australia, Japan, South Korea and other allies, are designed to stem the flow of advanced technologies to Russia to degrade the Russian military and certain strategic sectors that help President Vladimir V. Putin maintain control of Russia.
The United States took similar action against the Chinese telecom firm in 2020, cutting it off from global supplies of chips and other electronics made with U.S. technology. The measure ended up hurting the company's businesses.
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