Bloomberg: US concerned over China, Iran helping Russia import foreign chips

G7 member states are discussing whether to sanction companies in China, Iran, and North Korea that are providing Russia with parts and technology that have military purposes, Bloomberg reported, citing its sources.

Russia continues to access foreign chips and technology through intermediaries like Iran or North Korea, US Assistant Secretary of Commerce for Export Administration Thea Kendler said.

China previously hit back at claims that some of its state-owned firms may be helping Russia’s war in Ukraine, saying Washington should stop sending weapons if it wants the war to end, Bloomberg reported.

Millions of microchips made by Dutch companies reportedly ended in Russia since the beginning of Russia’s full-scale invasion, despite heavy sanctions on technological goods, an investigation by Dutch newspaper Nederlandse Omroep Stichting (NOS) showed.

Hundreds of deliveries have gone to three Russian companies linked to the defense industry, meaning that Dutch chips have also been used in Russian weapons.

The investigation showed a “clear pattern” of a small group of Chinese companies obtaining Dutch chips and exporting them to Russia month after month.

The chips mainly come from major chip producers found in Russian and Iranian-made kamikaze drones.

The companies’ spokespeople denied wrongdoing and claimed they don’t do business with Russia, adding that even if their customers are not allowed to re-sell chips, they are powerless if chips end up in Russia through parallel trade.