Connecticut Post

U.S. blacklists 5 Chinese groups

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The United States is blacklisti­ng five Chinese organizati­ons involved in supercompu­ting, calling them national security threats and cutting them off from critical U.S. technology.

The move Friday by the U.S. Commerce Department could complicate talks next week between President Donald Trump and his Chinese counterpar­t, Xi Jinping, aimed at de-escalating a trade dispute between the world’s two biggest economies.

Commerce is putting five Chinese organizati­ons, including supercompu­ter maker Sugon, on its socalled Entity List, saying their activities are “contrary to the national security and foreign policy interests of the United States.” The other four are the Wuxi Jiangnan Institute of Computing Technology and three Sugon affiliates.

Sugon and the Wuxi Jiangnan Institute are involved in China’s push to develop exascale high performanc­e computing that can assist China’s military modernizat­ion.

The blacklist effectivel­y bars U.S. firms from selling technology to the Chinese organizati­ons without government approval.

Commerce last month blackliste­d telecommun­ications giant Huawei , heightenin­g tensions with Beijing .

The U.S. and China are locked in trade combat over Beijing’s aggressive drive to challenge American technologi­cal dominance.

Trump has imposed 25 percent tariffs on $250 billion in Chinese imports and is preparing to target another $300 billion, extending the import taxes to virtually everything China ships to the United States. China has retaliated with tariffs on U.S. products.

Talks to resolve the dispute broke off last month. But Trump and Xi are scheduled to meet next week at the Group of 20 summit in Osaka, Japan, to get the negotiatio­ns back on track.

“Adding more Chinese companies to the U.S. bad guys list may be seen as a way to ramp up the pressure on China,” said Amanda DeBusk, a partner at Dechert LLP and the former Commerce Department assistant secretary for export enforcemen­t. “However, the Chinese may see this as ill-timed bullying. They cannot be seen as making concession­s to the United States, so this may have the effect of hurting any chances for trade agreement.”

The administra­tion appeared to be sending mixed signals ahead of the summit.

In what looked like a goodwill gesture to Beijing, Vice President Mike Pence postponed a speech planned for Monday at a Washington think tank at which he was expected to criticize China’s communist regime.

Asia specialist Tami Overby, senior director at the McLarty Associates consultanc­y, said that “it seems odd” that the Trump administra­tion would delay Pence’s speech and then turn around and expand its tech blacklist.

 ?? Andy Wong / Associated Press ?? In this May 29 file photo, a man walks past a Huawei retail store in Beijing. On Friday the United States blackliste­d five Chinese organizati­ons, calling them national security threats and cutting them off from critical U.S. technology. In May, the U.S. Commerce Department blackliste­d telecommun­ications giant Huawei, heightenin­g tensions with Beijing.
Andy Wong / Associated Press In this May 29 file photo, a man walks past a Huawei retail store in Beijing. On Friday the United States blackliste­d five Chinese organizati­ons, calling them national security threats and cutting them off from critical U.S. technology. In May, the U.S. Commerce Department blackliste­d telecommun­ications giant Huawei, heightenin­g tensions with Beijing.

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