U.S. blacklists more than 60 Chinese corporations, including top chipmaker SMIC and drone manufacturer SZ

Share to friends
Listen to this article

Dozens of Chinese corporations have been blacklisted by the U.S, including the nation’s top chipmaker SMIC and drone manufacturer SZ DJI Technology Co.

“This action stems from China’s military-civil fusion doctrine and evidence of activities between SMIC and entities of concern in the Chinese military industrial complex,” the Commerce Department stated in an announcement on Friday.

Seventy-seven corporations had been on the listing launched by Commerce Department, 60 of which had been Chinese corporations.

“We will not allow advanced U.S. technology to help build the military of an increasingly belligerent adversary.  Between SMIC’s relationships of concern with the military industrial complex, China’s aggressive application of military civil fusion mandates and state-directed subsidies, SMIC perfectly illustrates the risks of China’s leverage of U.S. technology to support its military modernization,” stated Commerce Secretary Wilbur Ross.

Semiconductor Manufacturing International Corporation, SMIC, is the top Chinese chip manufacturer. The ban will now limit the agency from shopping for key parts from U.S. suppliers.

The inventory worth of SMIC fell 5.2% in Hong Kong after the announcement, which was first reported by Reuters early on Friday.

“Entity List restrictions are a necessary measure to ensure that China, through its national champion SMIC, is not able to leverage U.S. technologies to enable indigenous advanced technology levels to support its destabilizing military activities,” Ross added.

The newest sanction is seen as President Trump’s efforts to cement his tough-on-China legacy as a part of ongoing commerce wars and financial points between the U.S and China.

Shortly after the ban was introduced, China’s international minister, Wang Yi, referred to as on the U.S to cease its “arbitrary suppression” of Chinese corporations.

“We urge the U.S. to cease its mistaken behavior of unwarranted oppression of foreign companies,” ministry spokesman Wang Wenbin instructed an everyday information convention in Beijing.

Companies that had been beforehand blacklisted embrace tech giants Huawei Technologies Co and 150 associates, and ZTE Corp. Surveillance digicam maker Hikvision was additionally included within the earlier ban.

Huawei has been combating telephone manufacturing because it was blacklisted final yr. “We never thought that the U.S.’s determination to attack Huawei would be so strong, so firm,” Huawei founder and CEO Ren Zhengfei said at that time.

Ties between the world’s two largest economies, U.S and China, have grown more and more antagonistic, particularly for the reason that coronavirus pandemic with all sides blaming the opposite over the dealing with of covid-19 outbreak.