Trump Administration Slaps Another Restriction on Chinese Firms

Washinton DC, December 18: Continuing to pile pressure on China and the Chinese economy, the Trump administration has yet again slapped harsh restrictions on China's top chipmaker Semiconductor Manufacturing International Corporation (SMIC) from using American technology.

 

 

Apart from SMIC dozens of Chinese companies were added to the Commerce Department's Entity List, which effectively cuts them off from US suppliers and technology. US Commerce Secretary Wilbur Ross said, the company perfectly illustrates the risks of China using US technology to modernize it's military adding that the, we will not allow advanced US technology to help build the military of an increasingly belligerent adversary.

 

The designation restricts companies from exporting U.S.-origin technology to the listed firms without a license, with a provision that effectively prohibits SMIC from acquiring technology to build chips with 10-nanometer circuits and smaller, the industry’s top class of chips.

 

The decision was taken to protect American interests by preventing advanced US technology that could be deployed to help build the military of its adversary. SMIC was branded as a perfect illustration of the risks of China using US technology to advance its military capabilities.

 

“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 agent said in a statement. According to the US dept, SMIC and TSMC are tightly linked to Huawei.

 

This restriction is going to hit hard on Chinese interests as the company is already facing a rough week as its co-CEO Liang Mong Song is stepping down from his position.

 

This has come in the middle of worsening tensions between the world’s two largest economies, which have clashed on issues from trade to the pandemic.