The U.S. Department of Commerce's Bureau of Industry and Security has added Sitonholy, a leading Chinese solutions provider that sells hardware in general and Intel and Nvidia processors in particular, into its Entity List, reports the South China Morning Post. American companies dealing with distributors must get an export license from the U.S. government. While this certainly hits Sitonholy, it is also a significant blow for American companies, including Intel and Nvidia.
Sitonholy is an enterprise solution provider and a cloud service provider from China. It sells hardware (with added value) and offers cloud services (including gaming services) based on technology from Intel and Nvidia. As a result, American companies dealing with Sitonholy will now have to get an export license from the U.S. Department of Commerce's Bureau of Industry and Security, which will review these applications with a presumption of denial. Given that the Chinese industry is barely prepared to replace American technology with domestic products, this is a significant blow for Sitonholy. However, this is also a major blow for U.S.-based companies as China is an important market for companies like AMD, Intel, and Nvidia. Meanwhile, it is not a dramatic hit as Sitonholy is one of many partners of American tech giants in China.
