Trump administration places restrictions on biggest Chinese chipmaker: reports


The Commerce Department warned U.S. companies of steps to take before exporting parts to China’s largest computer chip maker, saying on Friday that there is an “unacceptable risk” that parts sold to Semiconductor Manufacturing International Corporation could be used by the Chinese military.The department’s letter is stricter than what the department said earlier this year, telling applicants for “military end-user” licenses to sell to the company they were not required, according to Reuters, citing three people familiar with the subject.

The SMIC, which has denied providing products to the Chinese military, told Reuters it had yet to receive notification of further restrictions.

“SMIC reiterates that it manufactures semiconductors and provides services only to civil and commercial end users and end users,” SMIC said. “The company has no relationship with the Chinese military and does not manufacture for end users or military end uses.”

Analysts at brokerage firm Jefferies said the department had not added the minimum wage to its list of entities, according to which U.S. companies must apply for licenses to export to the company. Chinese telecommunications company Huawei is on the list, while the United States has decided to categorically ban the TikTok video app.

“The Trump administration’s actions on TikTok have received wide coverage, but the most significant action – from a global economic perspective and which will have significant spillover effects on global supply chains – are the growing restrictions on the minimum wage and other Chinese national champions like Huawei, ”Nicholas Klein, a Washington lawyer specializing in international trade, told Reuters.

It was not known to which companies the ministry had sent the letter. The department’s Bureau of Industry and Security told the news service on Saturday that it “constantly monitors and assesses any potential threat to US national security and foreign policy interests.”


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