Apple Seeks US Approval to Buy Chips From Blacklisted Chinese Company
Apple seeks U.S. approval to purchase memory chips from Chinese firm on trade blacklist, according to multiple reports. The tech giant has requested Washington’s permission to source components from China Xinjie Memory Technology (CXMT), a company designated by the U.S. Department of Commerce’s Entity List, Bloomberg and Al Jazeera reported.
The move highlights ongoing tensions between U.S. trade restrictions and global supply chain dependencies. CXMT, a major producer of dynamic random-access memory (DRAM) chips, was added to the blacklist over concerns about its ties to China’s military and potential risks to U.S. national security. Apple’s request, first disclosed by Bloomberg, marks one of the most high-profile instances of a U.S. company seeking exceptions to the restrictions.
U.S. trade officials have not yet disclosed the status of Apple’s application, but the company’s efforts to secure approval reflect broader challenges facing multinational corporations navigating geopolitical trade policies. “Apple’s request underscores the complexity of balancing regulatory compliance with operational needs in a fragmented global market,” said a spokesperson for the U.S. Department of Commerce, citing internal review processes.
The Entity List, maintained by the Bureau of Industry and Security (BIS), prohibits U.S. firms from exporting goods, technology, or services to designated entities without special licenses. CXMT’s inclusion followed allegations that it supplied technology used in China’s defense sector. However, the firm has denied these claims, stating its operations are commercial and unrelated to military applications.
Apple’s interest in CXMT’s chips stems from the company’s reliance on DRAM for its iPhones and other devices. DRAM is a critical component in modern electronics, and supply chain disruptions have increasingly pressured tech firms to diversify their sourcing. “Securing stable access to memory chips is vital for maintaining production timelines,” a company statement said, without specifying the volume of potential purchases.
The request also raises questions about the effectiveness of U.S. trade restrictions. While the Entity List aims to curb technology transfers to restricted entities, companies like Apple often seek exceptions for commercial reasons. In 2023, the Biden administration granted similar approvals to other firms, including semiconductor manufacturers, to mitigate shortages.
Industry analysts note that Apple’s approach could set a precedent for other companies facing similar constraints. “This isn’t just about one firm—it’s a test of how flexible the current regulatory framework is,” said Dr. Lena Choi, a trade policy expert at the University of California, Berkeley. “If Apple succeeds, it may encourage others to push for exceptions, potentially diluting the impact of the blacklist.”
However, national security concerns remain a barrier. The U.S. Department of Defense has previously warned that allowing exports to CXMT could enable China to advance its technological capabilities. A 2024 report by the Congressional Research Service highlighted risks associated with “indirect technology transfers” through third-party suppliers, though it acknowledged the difficulty of enforcing strict controls in global markets.
Apple’s application is being reviewed by the BIS, which typically takes 60 to 90 days to process such requests. The outcome could influence broader discussions about trade policy, particularly as U.S.-China relations remain strained. Meanwhile, CXMT has expressed hope that the approval process will “reflect the realities of global commerce,” according to a statement released by the company’s public affairs team.
The situation also underscores the growing interdependence of U.S. and Chinese tech industries. Despite geopolitical tensions, many American companies rely on Chinese suppliers for critical components, creating a delicate balance between security and economic interests. “This isn’t a binary issue,” said Michael Tan, a supply chain analyst at Gartner. “It’s about managing risk while maintaining competitiveness.”
As the review proceeds, stakeholders will be watching closely for signals about how the U.S. government prioritizes trade restrictions versus industrial needs. For Apple, the decision could determine its ability to meet demand for next-generation devices, while for policymakers, it represents another test of their strategy in an increasingly polarized global economy.