US to remove some Chinese entities from red flag list soon: US Official

US to remove some Chinese entities from red flag list soon: US Official
Flags of U.S. and China are seen in this illustration picture taken August 2, 2022. REUTERS/Florence Lo/Illustration

WASHINGTON: The Biden administration plans to remove some Chinese entities from a red flag trade list, amid closer cooperation from Beijing, a S official told Reuters on Wednesday (Dec 14).

The plan to remove them from the so-called “unverified” list, which is expected to come soon, is thanks to greater willingness from the Chinese government to permit US site visits, the person said.

The Commerce Department declined to comment.

Reuters could not determine the number or names of entities designated for removal. The decision signals a degree of cooperation between Washington and Beijing, the world’s largest economies which are locked in a heated trade and technology war.

The move may not herald a broader thaw.

The Biden administration is also expected to add Chinese memory chipmaker YMTC to a tougher export control list as soon as this week, according to another person familiar with the matter.

Companies are added to the unverified list because the United States cannot complete on-site visits to determine whether they can be trusted to receive sensitive technology exports from the United States.

US inspections of Chinese companies require the approval of China’s commerce ministry.

The removals mean US exporters will no longer have to conduct additional due diligence before sending goods to them.

The news about YMTC, which did not immediately respond to a request for comment, was first reported by the Financial Times.

Source: Reuters