"We will not allow advanced USA technology to help build the military of an increasingly belligerent adversary", Commerce Secretary Wilbur Ross said in a statement explaining the decision to put SMIC on the USA government's so-called Entity List. Notably, it arrives just a few weeks before the Democratic President Elect Joe Biden takes the office, on January 20.
WASHINGTON (AP) - The Trump administration blacklisted China's top chipmaker Friday, limiting the Semiconductor Manufacturing International Corp.'s access to advanced USA technology because of its alleged ties to the Chinese military.
A U.S. Commerce Department official told reporters on a conference call that the world's biggest drone company DJI was being added to the list.
Companies exporting parts made outside of the U.S.to SMIC will face certain restrictions depending on how much of their technologies are USA -origin, and Washington is talking to "like-minded governments" about forming a unified approach to the Chinese chipmaker, senior Commerce officials said.
"We will not allow advanced USA technology to help build the military of an increasingly belligerent adversary", Commerce Secretary Wilbur Ross said.
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Trump, a Republican, has declined to concede the election to Biden, who is expectec to be inaugurated as president on January 20. In the past week, the United States , the worst-hit nation, has reported an average of more than 215,000 new infections a day.
Ross said the government would presumptively deny licenses to prevent SMIC from accessing technology to produce semiconductors at advanced technology levels - 10 nanometers or below.
Earlier this month SMIC was also placed on a U.S. Defense Department blacklist - a move to restrict the ability of Americans to invest in the company, whose shares are listed in Hong Kong and on the technology-focused STAR market in Shanghai.
Additionally, in some cases, companies have been added to this list for facilitating "the export of items by China that aid repressive regimes around the world, contrary to USA foreign policy interests".
SMIC did not immediately respond to requests for comment.
These include entities in China accused of enabling human rights abuses, supporting Chinese militarization and unlawful maritime claims in the South China Sea, acquiring USA items in support of the People's Liberation Army and stealing US trade secrets. But while the White House rattles SMIC's closely-knit integrations to the military, the case for DJI is less clear.