Trump Administration Divided Over Blacklisting Chinese Chipmakers – FT

Trump Administration Divided Over Blacklisting Chinese Chipmakers – FT

The Trump administration is reportedly divided over the timing and impact of adding several Chinese semiconductor companies to the U.S. export blacklist, also known as the "entity list," according to a report published by the Financial Times late Thursday.

Sources familiar with the matter told the FT that the administration had drawn up plans to impose new export restrictions targeting key Chinese chipmakers, a move that would significantly limit their access to American technology and components. The move is seen as part of Washington’s broader efforts to counter China's technological advancement and protect national security.

However, the plan has sparked internal disagreement among U.S. officials. Some in the administration are urging caution, arguing that blacklisting major Chinese technology firms at this point could undermine recently renewed trade talks. Over the weekend, U.S. and Chinese officials signed a trade accord in Geneva aimed at stabilizing the fragile relationship between the world’s two largest economies.

According to the FT, officials opposed to immediate action believe that sanctions at this stage might escalate tensions and derail the diplomatic momentum achieved during the Geneva agreement. They stress the importance of preserving diplomatic space for ongoing negotiations, particularly in sensitive sectors like technology and intellectual property.

The final decision on whether and when to proceed with the blacklisting reportedly remains under consideration.

The move follows a broader trend in Washington’s policy that increasingly frames China's tech sector as a national security concern, especially amid the ongoing battle for semiconductor supremacy.