Apple seeks approval to buy memory from blacklisted Chinese firm
▼ Summary
– Apple requested an exception from the Trump administration to buy RAM chips from CXMT, a company blacklisted for ties to the Chinese military, to ease supply chain pressure.
– Rising RAM and storage prices have already led Apple to raise prices on most products this week.
– Though not legally barred from buying from CXMT, Apple faces serious reputational risks from doing business with a company linked to the Chinese military.
– CXMT was proposed for the Commerce Department’s “Entity List” but was held off due to ongoing US-China trade negotiations.
– Granting Apple’s request would likely cause significant blowback, with Republican House China committee chair John Moolenaar calling such a partnership a “grave mistake.”
Apple is seeking a special exemption from the Trump administration to purchase RAM chips from CXMT, a Chinese memory manufacturer that has been blacklisted by the Pentagon due to its alleged ties to the People’s Liberation Army, according to a report from the Financial Times. The move comes as skyrocketing RAM and storage prices have forced Apple to raise prices across nearly its entire product lineup this week. Securing alternative supply sources is a logical step to ease supply chain pressures.
Legally, Apple is not prohibited from buying chips from CXMT. However, doing business with a company linked to the Chinese military carries serious reputational risks. CXMT could still face export controls if the U. S. government determines that its operations undermine American security. The company was previously proposed for addition to the Commerce Department’s so-called “Entity List”, but that action was delayed while the White House pursued trade negotiations with China.
Whether the administration will grant Apple’s request remains uncertain. Tim Cook has invested considerable effort in building ties with the Trump administration, presenting the president with elaborate statues and attending a screening of the Melania movie, which was directed by Brett Ratner, a filmmaker accused of sexual assault. Yet, if the White House approves Apple’s request, the decision would likely spark significant backlash.
John Moolenaar, the Republican chair of the House China committee, told the Financial Times that “Apple choosing to partner with a Chinese military company would be a grave mistake.” He added, “Helping the [Chinese Communist Party] succeed in its plans to dominate critical supply chains will make our country’s tech industry and economy more dependent on China at a time when we must build secure tech supply chains with our allies.”
(Source: The Verge)
