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FT Reports That Apple Is Lobbying to Buy Memory Chips From Blacklisted Chinese Company CXMT

Demetri Sevastopulo and Michael Acton, reporting for the Financial Times (paywalled, alas):

Apple is lobbying the Trump administration for clearance to buy
memory chips from CXMT, a Chinese company that the Pentagon has
put on a blacklist because of alleged connections to the People’s
Liberation Army, according to six people familiar with the
matter. […]

Apple is not barred from buying chips from CXMT, or YMTC, another
Chinese memory chipmaker. But the Pentagon has put both companies
on its Chinese Military Company blacklist. The so-called 1260H
list contains dozens of Chinese groups with alleged ties to the
PLA that undermine US national security. […]

Congress would probably object strongly if the administration
blessed Apple purchases from CXMT, which is the Chinese national
champion. “Apple choosing to partner with a Chinese military
company would be a grave mistake,” John Moolenaar, the Republican
chair of the House China committee, told the FT. “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,” Moolenaar said. […]

One former official warned the US risked losing another industry
by letting Apple buy memory from a group that receives Chinese
subsidies.

“Trump can show the courage to keep American memory alive for our
security and our competitiveness or pour it down the drain so
[Apple chief executive] Tim Cook can squeeze out a few more points
of margin.”

In Apple’s announcement of the company’s imminent leadership transition, they said that in his new role as executive chairman, “Cook will assist with certain aspects
of the company, including engaging with policymakers around the world.” It occurs to me, more and more, that Cook might be no less busy than he was as CEO.

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