The us tightens trade restrictions on Chinese chipmaker SMIC

 

The US Department of Commerce, the most important chip maker in China, the Semiconductor Manufacturing International Corporation known for brief as SMIC, added to its blacklist after determining that there was an “unacceptable risk” that the equipment received by SMIC might be used for military purposes. consistent with Reuters.

This move prevents US computer chip companies from exporting their technology to SMIC without obtaining a license from the United States government . SMIC is that the latest major Chinese company to be blacklisted by the US government; Adding this to Huawei, which made it to the list in 2019.

According to the US Wall Street Journal, the US Department of Commerce wrote during a letter to SMIC on Friday that exporting products to SMIC “would pose an unacceptable risk by moving the company’s equipment to military use within the People's Republic of China”.

And just in case you do not realize it , last April, the Donald Trump administration tightened export rules for shipping goods to China. It claims it's seeking to prevent US companies from selling products that would be wont to help boost the capabilities of the Chinese military.

For its part, SMIC said to Reuters in a politician statement that it manufactures semiconductors and provides its services to “commercial end users only and for end-use,” which “it has no relationship with the Chinese army and doesn't manufacture for any military users.”