US blacklists Chinese business group for trade


Continuing to fight China for trade until the bitter end of its reign, the Trump administration has placed a handful of tech companies in that country on a trade blacklist. Among the 77 new additions are Minimum wage (OTC: SMIC.Y), the country’s largest chipmaker and specialist in SZ DJI Technology drones.
Both are now on the government entity list, which effectively bars US companies from exporting products to the companies listed there. However, companies can apply for licenses to be exempt from this restriction.

Image source: Getty Images.

As with other such measures it has taken, the administration said its reason was that target companies could potentially use US technology for nefarious purposes. “We will not allow advanced US technology to help build the army of an increasingly belligerent adversary,” Commerce Secretary Wilbur Ross said in a statement.

He also called the SMIC the “national champion” of Chinese industry.

The SMIC said it has nothing to do with its country’s military, although the country’s businesses are often linked in one way or another to various branches of government.

There is, however, a major caveat regarding the new entity list inclusions, especially with regard to the minimum wage. More importantly, the harshest penalties apply to equipment manufacturing chips at 10 nanometers or less – essentially, those used for more advanced products.

These products face the government’s so-called “deemed refusal”, but other technologies for the minimum wage and its peers will be considered on a case-by-case basis.

Critics say this makes the new measure rather toothless. ” It is good [public relations] line: “We put him on this list of bad guys,” former trade executive William Reinsch said as quoted by Reuters. “In practice… it doesn’t change anything. “


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