The US Department of Commerce’s Bureau of Industry and Security recently added another Chinese firm on to the country’s growing blacklist. The company is called Sitonholy, a leading China-based solutions provider and hardware vendor, primarily selling both Intel and NVIDIA chips to its clientele.
As per Tom’s Hardware’s report, Sitonholy is known as an enterprise solutions and cloud service provider that sells hardware, as well as provide cloud serivces, all based on technology from the blue chipmaker and green GPU maker, all within China. As to why the company has earned the ire of the US government: the latter says the company is on the export blacklist because the company was involved in acquiring AI chips for the Chinese military.
Sitonholy isn’t alone in being added to the blacklist. In total, the US government added four Chinese companies to the list for the same reason. The other three companies are Linkzol Technology, Xi’an Like Innovative Information Technology, and Beijing Anwise Technology.
With Sitonholy now on the blacklist, US companies wishing to deal with the company will now have to apply for an export license with the Bureau of Industry and Security, where the government body will review these applications with a presumption of denial. For the firm’s key partners Intel and NVIDIA, the decision is likely to affect the brands but not to the extent that it would greatly disrupt their cashflows – the company is merely one of several partners to the giant in China, after all.
The US government’s crackdown on companies in China has been ongoing since the Trump administration. NVIDIA can attest to this: last year, the GPU brand fast-tracked what would be its last batch of full-fat GeForce RTX 4090 graphics cards into the country, before a US regulation and sanction aimed at Chinese ambition to drive advancement in the field of military and AI advancement.
(Source: Tom’s Hardware)
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