The plan to remove them from the so-called “unverified” list, which is expected to happen soon, is due to an increased willingness by the Chinese government to allow visits to American sites, the person said.
The Commerce Department declined to comment.
Reuters could not determine the number or names of entities designated for the withdrawal. The decision signals a degree of cooperation between Washington and Beijing, the world’s largest economies that are locked in a bitter trade and technology war.
This decision does not necessarily herald a wider thaw.
According to another person familiar with the matter, the Biden administration is also expected to add Chinese memory chip maker YMTC to a stricter export control list as early as this week.
The companies are being added to the unverified list because the US cannot conduct site visits to determine whether they can be trusted with exports of sensitive technology from the US.
US inspections of Chinese companies require approval from the Chinese Ministry of Commerce.
The cuts mean that US exporters will no longer have to perform additional due diligence before sending goods to them.
The news about YMTC, which did not immediately respond to a request for comment, was first reported by the Financial Times.