China Relents, Lets U.S. Export Control Inspect 3D NAND Maker YMTC:
The U.S. administration says that the Chinese government allowed U.S. export control inspections of People's Republic's high-tech companies that were placed on its Unverified List in October, according to a report from the Financial Times. This move seems designed to ensure that Chinese 3D NAND company YMTC does not get placed on the Department of Commerce's "Entity List," which would severely damage the company's ability to procure equipment from American companies.
YMTC and a number of Chinese high-tech companies were placed on the Unverified List in early October because the U.S. government could not verify whether their products (or products made using their products) ended up in the hands of China's military. Once a company is placed on the Unverified List, it has 60 days to prove its products do not break any rules. If the company cannot prove this within 60 days, it is placed on a trade blacklist called the "Entity List" and, in the case of YMTC, is denied the use of any American technology.
Normally, the Chinese government refuses to allow U.S. export controls inspectors access to domestic companies. However, the government made an exception in the case of YMTC and some other firms from Tianxia, most likely because YMTC, and the semiconductor industry in general, is so essential for the country.
"We are seeing better behavior," Alan Estevez, the US commerce under-secretary for industry and security, said to the Financial Times. "Mofcom has been more forthcoming. [...] We are seeing a change in attitude. It's not the first time we've seen a such a change in attitude, so it depends on how long that is sustained."
(Score: 2) by ikanreed on Friday December 09, @06:34PM (1 child)
Chinese companies... can't supply the Chinese military?
Does that strike anyone else as completely fucking insane?
(Score: 0) by Anonymous Coward on Friday December 09, @07:33PM
They can, but they will get hit by sanctions.
(Score: 2) by RedGreen on Friday December 09, @07:30PM (1 child)
It will last as long as the inspectors are nearby. I worked at a place once where the day started as normal but then the pace of the work was not as fast as was normal and the method of doing it changed as well. Then some people in white coats starting moving through the plant, they were federal inspectors, once they were done inspecting the sloppy fast as hell pace of working came back. I would think the Chinese have heard of this method of faking it for the inspector too.
"I modded down, down, down, and the flames went higher." -- Sven Olsen
(Score: 0) by Anonymous Coward on Saturday December 10, @08:27AM
For example, the factory could be officially done for the day. Then they produce some extra stuff...
That said two friends compared their Louis Vuitton wallets (same model). The fake one actually look better made than the genuine stuff. So sometimes the fakes are better and not produced at the same factory?