China_s_Commerce_Ministry_Denounces_U_S__VEU_Cut_for_Semiconductor_Firms

China’s Commerce Ministry Denounces U.S. VEU Cut for Semiconductor Firms

The U.S. Department of Commerce announced on Friday that it is removing Intel Semiconductor (Dalian) Co., Ltd., Samsung China Semiconductor Co., Ltd. and SK Hynix Semiconductor (China) Ltd. from its “validated end-user” (VEU) list, a move that ends their simplified export clearance for certain high-tech civilian items.

The Chinese Commerce Ministry quickly voiced strong opposition, saying this decision turns export controls into a geopolitical tool. “The global semiconductor industry is deeply interconnected,” said a ministry spokesperson. “This action will seriously impact the stability of global semiconductor industrial and supply chains.”

VEU authorization previously allowed U.S. exporters to ship approved products without a license for each shipment, speeding up trade and cutting red tape. By revoking it, the U.S. risks delays and added costs for companies operating in the Chinese mainland, further straining already complex trade relations.

The ministry urged the U.S. to correct its move immediately to safeguard the security and stability of global industrial and supply chains. It added that China will take necessary measures to firmly safeguard the legitimate rights and interests of its enterprises.

Industry observers warn that escalating export controls could ripple through global markets, affecting everything from consumer electronics to automotive manufacturing. As tensions rise, businesses and policymakers will be watching closely to see if either side shifts its stance to prevent a deeper disruption in one of the world’s most critical high-tech sectors.

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