US Blacklists Dozens of Chinese Trade Firm

USA baned dozens of Chinese companies, including the country’s top chipmaker SMIC and Chinese drone manufacturer SZ DJI Technology Co Ltd, according to news reportes issued on Saturday.

The U.S. Commerce Department reported that the action against SMIC and DJI “stems from China’s military-civil fusion (MCF) doctrine and evidence of activities between SMIC and entities of concern in the Chinese military industrial complex.

On other hand, Commerce Secretary Wilbur Ross explained that the department would “not allow advanced U.S. technology to help build the military of an increasingly belligerent adversary.”

The government would presumptively deny licenses to prevent SMIC from accessing technology to produce semiconductors at advanced technology levels: 10 nanometers or below, Ross added.

The Companies previously added to the list include telecoms equipment giants Huawei Technologies Co and 150 affiliates, and ZTE Corp over sanction violations, as well as surveillance camera maker Hikvision over suppression of China’s Uighur minority.

Last month, the Defense Department added the SMIC company to a blacklist of alleged Chinese military companies, effectively banning U.S. investors from buying its shares starting late next year. SMIC has repeatedly reported that it has no relationship with the Chinese military.

Noteworthy, the move is seen as the latest in Republican Trump's efforts to cement his tough-on-China legacy as part of lengthy fight between Washington and Beijing over trade and numerous economic issues.