"US Considers Additional Sanctions on Chinese Semiconductor Companies... Disagreement on Timing"

The Trump administration in the United States is considering additional sanctions on Chinese semiconductor companies. However, there is disagreement on the timing of the sanctions due to their potential impact on tariff negotiations with China.

According to the Financial Times (FT) on the 15th (local time), the US Department of Commerce's Bureau of Industry and Security (BIS) is considering adding Chinese memory semiconductor company ChangXin Memory Technologies (CXMT) to the export 'blacklist,' which prohibits transactions with US companies.

According to a draft by BIS, subsidiaries of China's largest foundry company SMIC (Semiconductor Manufacturing International Corporation) and memory semiconductor company YMTC (Yangtze Memory Technologies) are also included in the sanctions review. SMIC and YMTC headquarters have already been designated as US export-prohibited companies.

However, there is a division within the Trump administration regarding the timing of the additional sanctions. Some US officials believe that adding China's key semiconductor companies to the sanctions list at this time could jeopardize future negotiations with China. On the other hand, hardliners argue that the containment of China's semiconductor technology should not be delayed any further, leading to a split in opinions.

Meanwhile, the US and China, which had been imposing ultra-high tariffs exceeding 100% on each other, have agreed to lower a significant portion of the tariffs for 90 days, entering a 'tariff truce.' During this period, the two countries plan to conduct additional negotiations on economic and trade issues.

Reporter Lee Song-ryeol, Hankyung.com yisr0203@hankyung.com