US President Donald Trump’s administration announced Friday that it will add dozens of Chinese companies, including SMIC, the country’s largest company in the semiconductor industry, to the blacklist, in a move that is the latest in US President Donald Trump’s efforts to tighten his policy towards China.
Reuters said, “The US administration is preparing to list dozens of Chinese companies on the blacklists, including the largest company producing chips in China.”
She added that the Trump administration will blacklist 80 companies, which means that dealing with them is prohibited.
The decision means that US companies must now apply for a license before exporting to SMIC.
It specifically targets the Chinese company’s ability to obtain materials to produce chips 10 nanometers or smaller, the best class in the industry.
A senior US Commerce Department official said, “Washington has evidence that (SMEIC) worked with the Chinese military to develop short and medium-range ballistic missiles and protective shields for soldiers, but it has been discussing with the company for months about a way to avoid the classification.”
“Simply we can no longer stand idly by and watch our opponent use our technology to support their military capabilities,” the official added.
On the other hand, the Chinese Foreign Ministry urged the United States to stop what it described as the unjustified crackdown on Chinese companies.
The Chinese Foreign Ministry accused the United States of politicizing economic and trade issues.
“The United States should choose the path of dialogue and consultation with China, instead of adopting the unacceptable path of unilateral sanctions against Chinese companies,” said Chinese Foreign Minister Wang Yi.
The number of Chinese companies listed on the lists is more than 270 companies, including Huawei and ZTE, which work in the field of communications, and Hikvision for surveillance systems.
Washington says that these companies pose a threat to US national security and that they are linked to the Chinese military, which Beijing denies.