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US Reportedly Curbs Exports From Chinese Chipmaker SMIC For ‘Unacceptable Risks’ – Sputnik International

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Semiconductor Manufacturing International Corp

Previously, reports suggested the US Department of Defense was considering adding Semiconductor Manufacturing International Corporation (SMIC) to an Entity List along with Huawei, ZTE and more than 70 Chinese tech firms, barred from doing business with US firms without a licence, as part of the ongoing trade war between Washington and Beijing.

The United States Department of Commerce has reportedly sanctioned China’s biggest chipmaker, Semiconductor Manufacturing International Corporation (SMIC), curbing exports from the company, according to a letter cited by the Wall Street Journal (WSJ) on Saturday.

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According to the Commerce Department’s dispatch to the Shanghai-based firm, the WSJ reports, US companies will now need a licence to export certain products to China’s largest chipmaker, because of the “unacceptable risk” that SMIC products could be used for military purposes.

An SMIC spokeswoman cited by the WSJ said in an emailed statement that the firm had not yet received an official notice of the sanctions and was looking into the situation.

The chipmaker reiterated that it has no relationship with the Chinese armed forces and does not manufacture goods for any military end-users or uses.

There has not been any official comment on the report from the US Commerce Department.

Escalated US Attack

Earlier reports in September suggested the Trump administration was considering adding the firm to a government Entity List along with Huawei, ZTE and more than 70 Chinese tech firms which are barred from conducting business with US firms.

Adding SMIC to the Commerce Department’s so-called entity list would in effect target exports from a broader set of companies.

“The military end-use rules only apply to a subset of listed US origin items. The Entity List rules apply to all US origin and some foreign-origin items,” said Kevin Wolf, an export control lawyer at Akin Gump and senior Commerce Department official in the Obama administration, as cited by Bloomberg.

Around 50 per cent of SMIC’s equipment originates from the US, with the company having a market value of more than $29 billion, according to Bloomberg data, with US chipmakers Qualcomm Inc. and Broadcom Inc. among SMIC’s customers.

“Should the US export ban on SMIC materialise, it will signal an escalated attack by the US on China’s semiconductor industry and more Chinese companies will likely be included,” analyst Edison Lee of the American multinational independent investment bank and financial services company Jefferies said.

‘Blatant Bullying’

In the wake of the above-mentioned reports, the Chinese semiconductor company reiterated that it strictly abides by the laws and regulations of relevant nations while having maintained cooperative relations with global chipmaking equipment suppliers for years.

“Any assumptions of the company’s ties with the Chinese military are untrue statements and false accusations. The Company is in complete shock and perplexity at the news. Nevertheless, SMIC is open to sincere and transparent communication with the US Government agencies in hope of resolving potential misunderstandings,” SMIC said in a statement on its website.

Chinese Foreign Ministry spokesman Zhao Lijian slammed Washington over “blatant bullying.”

“What it has done is violated international trade rules, undermined global industrial supply and value chains and will inevitably hurt US national interests and its own image,” Zhao told a news briefing in Beijing.

China’s Tech Giants in the Crosshairs

The US Department of Commerce added dozens of internationally based Huawei affiliates to its Entity list in August 2020, restricting their ability to do business with American firms. The decision expanded on rules issued in May subjecting companies to enhanced licensing requirements if they sold third-party computer chips or chip designs to Huawei that rely on US software or manufacturing equipment.

Back in 2019 the department essentially banned US companies from selling parts and components to 68 Huawei affiliates, allowing, however, for temporary waivers that enabled limited transactions to ease the transition for American suppliers.

Those waivers expired in August 2020, with a fresh order subjecting an additional 38 Huawei affiliates around the world to similar restrictions.

Fresh measures on the part of Washington could block Huawei from gaining access to chipsets, in yet another stinging blow to the Shenzhen-based tech giant.


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REUTERS / Dado Ruvic
A smartphone with the Huawei and 5G network logo is seen on a PC motherboard in this illustration picture taken January 29, 2020

Earlier this month China had launched plans to boost the mainland chipmaker and others, seeking to distance itself from US technologies.

Sanctions targeting the Chinese partially state-owned publicly-listed semiconductor foundry company, SMIC, would come as yet another step in the escalating tensions between the US and China, that have been exchanging invective on issues ranging from trade, their respective governments’ handling of the coronavirus pandemic, and perceived threats to intellectual property and national security.

The Trump administration began its onslaught by blacklisting Huawei Technologies Co., preventing the giant Chinese telecommunications provider from buying components from American suppliers and pressuring allies to follow suit.


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REUTERS / Florence Lo/Illustration
China and U.S. flags are seen near a TikTok logo in this illustration picture taken July 16, 2020. REUTERS/Florence Lo/Illustration

Subsequently, President Donald Trump threatened to ban the video app TikTok from China’s ByteDance Ltd. if the service weren’t sold to American owners, sparking indignation among Chinese executives and government officials, who have repeatedly dismissed all allegations of spying and presenting a security threat.

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GTA gas prices to jump 14 cents a litre – Toronto Sun

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Gas prices have not been this high since August 2022

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There’s a price shocker coming at the pumps.

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Gas in Ontario, including the GTA, will go up 14 cents a litre overnight for customers filling up on Thursday, says Dan McTeague, the president of Canadians for Affordable Energy.

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“So going from $1.65.9 (per litre) going to $1.79.9,” said McTeague adding the increase will affect the entire province except for northwestern Ontario, which gets its prices from the prairies market.

“That’s the highest level since August, 2022, almost two years ago,” he added.

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McTeague said the reason for the price hike is that stations are switching over to summer-blend gasoline.

“Around this time of year prices go up to reflect the new blend of gasoline, which is more expensive to make,” he explained. “Butane is used in the winter, for gasoline, whereas in the summer it’s alkyaltes. Alkyaltes are extremely expensive.”

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“In the winter you want your ignition to start quickly in cold temperatures, you uses volatile butane. You take that out in the summer. That’s a big difference. This is going to be around for awhile and it could get higher,” McTeague said.

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McTeague also blamed the rise in gas prices in Canada on the carbon tax increase, the rising price of oil, and the weak Canadian dollar.

“It just makes a bad situation worse,” he said. “It’s just another brick in the wall, another load on the camel’s bank. The cost of denying our resources, blocking pipelines, is one of the most significant reasons why the Canadian dollar is so weak.”

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Wildfire sparked by TC Energy pipeline rupture under control – Yahoo Canada Finance

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CALGARY — A wildfire in west-central Alberta that was sparked by a natural gas pipeline rupture is under control, but an investigation into what caused the pipeline to break could take months or even years.

As of Wednesday morning, there was very little fire activity left in Yellowhead County, where a 10-hectare fire burned on Tuesday about 40 kilometres northwest of Edson.

“But for it to be considered extinguished, we’re going to have to hot spot,” said Caroline Charbonneau, area information co-ordinator with Alberta Forestry and Parks.

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“That means we’ll have to dig into the ground, look and feel for hot spots, and then douse it with water. And that could take several days.”

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The fire on Tuesday, which occurred as much of Alberta is dealing with extremely dry early spring conditions, was sparked when a natural gas pipeline owned by TC Energy Corp. ruptured.

There were no injuries, and the fire was never a threat to any surrounding communities. The affected pipeline segment was isolated and shut in and there is no more gas leaking from the pipeline.

The Canada Energy Regulator had inspectors on site Wednesday to monitor the company’s response and the Transportation Safety Board is investigating the incident.

According to CER, there have been 12 natural gas pipeline ruptures in Canada since 2008, and Tuesday’s incident near Edson was the first rupture on that particular pipeline within that time period.

The 36-inch diameter pipe that ruptured is part of TC Energy’s NGTL pipeline system, which transports natural gas from Alberta and northeast B.C. to domestic and export markets. The system spans 24,631 kilometres and connects with TC Energy’s Canadian Mainline system, Foothills system and other third-party pipelines.

The NGTL pipeline system is like a web made up of different lines that have been developed in stages.

In 2022, there was a rupture on a separate part of the system that resulted in an explosion and fire near Fox Creek, Alta. There were no injuries.

A TSB investigation into that incident took more than 14 months, and concluded that the pipeline ruptured due to reduced pipe wall strength caused by external corrosion.

While the primary risk of a crude oil pipeline leak is an oil spill that harms the local ecosystem, natural gas pipeline ruptures can and do result in fires or explosions, said Bill Caram, executive director of the Pipeline Safety Trust, a U.S.-based non-profit organization.

“The chances are extremely high that a molecule of natural gas that enters a pipeline will go through that pipeline without a failure. Pipelines are quite safe, and when you look at incident rates compared to other modes of transportation like rail or truck, they are much less likely to have a failure,” Caram said.

“But what you don’t get a sense of by looking at the risks of pipelines in that way is how catastrophic a failure can be when it does happen.”

According to the TSB, there were 19 recorded incidences of fires related to pipelines in Canada between 2012 and 2022.

The TSB’s most recent report on pipeline transportation safety in Canada states that in 2022 there were 100 companies transporting either oil or gas or both in the federally regulated pipeline system, which includes approximately 19,950 km of oil pipelines and approximately 48,700 km of natural gas pipelines.

That year, there were 67 pipeline transportation accidents and incidents on federally regulated pipeline systems, according to the report.

That number was well below the 10-year average of 112 occurrences, and was also the lowest number of occurrences since 2019, when 52 pipeline accidents or incidents were recorded by the TSB.

The TSB defines a pipeline “accident” as an incident that results in a person being injured or killed, a fire or explosion, or significant damage to the pipeline affecting its operation.

Less severe pipeline events that involve the uncontrolled release of a commodity or a precautionary or emergency shutdown are classified by the TSB as “incidents.”

There have been no fatal accidents directly resulting from the operation of a federally regulated pipeline system since the inception of the TSB in 1990.

This report by The Canadian Press was first published April 17, 2024.

Companies in this story: (TSX:TRP)

Amanda Stephenson, The Canadian Press

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Pearson airport gold heist: Police announce 9 arrests – CTV News Toronto

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Police say one former and one current employee of Air Canada are among the nine suspects that are facing charges in connection with the gold heist at Pearson International Airport last year.

At a news conference Wednesday on the one-year anniversary of the heist, police confirmed that five suspects were arrested and four others are facing charges in connection with the largest gold theft in Canadian history.

Police said the suspects face a total of 19 charges and Canada-wide warrants have been issued for the arrest of three of the suspects who have not yet been apprehended. All of the suspects arrested in connection with the heist have been released on bail, police confirmed in a news release issued Wednesday.

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Peel Regional Police Chief Nishan Duraiappah said the heist was “carefully planned” by a “well-organized group of criminals.”

“This story is a sensational one and one which probably, we jokingly say, belongs in a Netflix series,” he said.

Police said 6,600 gold bars were stolen from Air Canada’s cargo facility on the evening of April 17, 2023 by a suspect who arrived at the warehouse in a five-tonne delivery truck.

The gold, along with about $2.5 million in foreign currency, had been shipped to Toronto from Zurich in the hull of an Air Canada plane and was offloaded to an Air Canada cargo facility shortly after the flight landed at Pearson Airport that afternoon.

Police allege that the suspect came into possession of the stolen gold and bank notes after presenting Air Canada personnel with a fraudulent airway bill.

“The airway bill was for a legitimate shipment of seafood that was picked up the day before,” Det.-Sgt. Mike Mavity, the major case manager for the joint investigation, dubbed Project 24K, told reporters on Wednesday.

“This duplicate airway bill was printed off from a printer within Air Canada cargo.”

A suspect and suspect vehicle are pictured during a news conference about a gold heist at Perason Airport. (Handout /Peel Police)Mavity said a forklift arrived a short time later and loaded the stolen gold and currency into the back of the truck. The suspect then drove off with the gold bars, which were estimated to be worth about $20 million.

Brinks Canada, which was hired to provide security and logistics services for the transportation of the shipment, showed up at the facility a few hours later to pick up the items, police said.

According to investigators, when Air Canada employees tried to locate the container, they realized it was missing and quickly launched an internal investigation. Police were notified about the stolen goods shortly before 3 a.m. the following day, Mavity said.

Air Canada launches probe

An exhaustive investigation followed, police said, with officers reviewing video surveillance footage from 225 businesses and residences in an effort to track the path of the truck, which has since been recovered.

Mavity said that last summer, they identified 25-year-old Durante King-McLean as the driver of the truck but were unable to locate him.

In September 2023, Mavity said King-McLean was stopped in rental vehicle by Pennsylvania State Police near Chambersburg, Pennsylvania.

“After a brief foot chase, he was detained and troopers located 65 illegal firearms in the vehicle,” Mavity said Wednesday.

According to Mavity, investigators believe that the stolen gold was melted down and sold and the proceeds were used to purchase illegal guns for a firearms trafficking operation.

He said members of Project 24K have been liaising with the U.S. Alcohol, Tobacco, and Firearms Bureau (ATF) with respect to this aspect of the investigation.

Speaking at the news conference on Wednesday, a representative from the ATF said the law enforcement agency believes the 65 guns seized during the arrest of King-McLean were bound for Canada.

While King-McLean is currently in custody in the United States, he is now wanted on multiple charges in connection with the gold theft.

“We are alleging that some individuals who participated in this gold theft are also involved in aspects of this firearms trafficking,” Mavity added.

Gold taken during a heist at Pearson airport is shown being loaded into the back of the suspect’s truck in this image taken from surveillance footage released by police. (Peel Regional Police)Officers in Peel Region executed 37 search warrants in connection with Project 24K and police said only small quantity of the gold was recovered. Six gold bracelets, worth about $89,000, were seized, jewelry that police believe was made out of some of the gold that was stolen. Police said $434,000 in Canadian currency was also seized during the investigation. Officers believe that money was obtained through the sale of some of the stolen gold.

Two “debt lists” were found by investigators at separate locations during the investigation, police said.

“A common term in drug trafficking investigations, we believe these lists actually show where the money was distributed when the gold was sold by the suspects,” Mavity said.

He said the names on both lists are “consistent” and police are trying to identify all of those identified.

Six pure gold bracelets worth an estimated $89,000 were recovered as part of an investigation into a gold heist at Toronto Pearson airport and are displayed in this image from Peel police. (Handout)

‘They needed people inside Air Canada’

Police said one current Air Canada employee, identified as 54-year-old Brampton resident Parmpal Sidhu, has been charged with theft over $5,000 and conspiracy to commit an indictable offence. A Canada-wide warrant has been issued 31-year-old Simran Preet Panesar, who police said resigned from his position as a manager at Air Canada back in the summer.

“He has been known to us since early on in the investigation. He actually led a tour for Peel Regional Police before we knew his involvement,” Mavity said Wednesday.

He added that police have an idea where Panesar may be but did not elaborate on a possible location.

Mavity said he believes the suspects needed employees on the inside to carry out the heist.

“Because of their position within Air Canada, in my opinion, yeah they needed people inside Air Canada to facilitate this theft,” he said.A map showing the alleged movements of vehicles during a gold heist at Toronto Pearson Airport is displayed during a news conference Wednesday November 17, 2024. (Handout /Peel police)

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