China is Russia’s biggest supplier of electronics, accounting for a third of its semiconductor imports and more than half of its computers and smartphones. Beijing has opposed the increasingly severe measures that the U.S. has taken to restrict Russia’s trade and economy in response to its invasion of Ukraine, however U.S. officials expect tech suppliers such as SMIC to uphold the new rules and curtail trade of sensitive technology with American origin, especially as it relates to Russia’s defense sector. Any items produced with certain U.S. inputs, including American software and designs, are subject to the ban, even if they are made overseas, a U.S. official told Bloomberg News on Monday. Companies that attempt to evade these new controls would face the prospect of themselves being cut off from U.S.-origin technology and corporate executives risk going to jail for violations.
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