USA Adds SMIC Firm to Trade Blacklist

USA American government is seeking to add the Semiconductor Manufacturing International Corp (SMIC) company to a trade blacklist.

This move threatens to further disrupt a massive $300 billion-worth annual chip trade between China and other countries, including the US, whose companies sold about $70 billion worth of chips to China in 2019.

It aims at putting a stranglehold on China's semiconductor industry - a crucial sector for the development of almost all advanced technologies such as 5G, could bring serious challenges to Chinese companies and push China to accelerate investment and development in its domestic industry.

On other hand, SMIC firm denied being involved with China’s military, as it responded to reports the US government was considering adding the company to a trade blacklist.

The company called for dialogue with the US, stating it has no relationship with China’s military and was in “complete shock about reports a ban was being considered.

According to an official from the US Department of Defense, that the US government was considering adding SMIC to its entity list, which would require US suppliers to obtain licenses before selling products to the Chinese firm.

The US official did not provide any reason behind the move, but some officials have indicated that the company's ties with the Chinese military were under scrutiny, according to Reuters.

According to .mobileworldlive, Chinese experts criticized that the US does not have or needs any concrete ground to target SMIC and it was just the latest escalation in the US' ill-intentioned tech war to contain China's rapid rise in the realm of technology.

Using the tech war, the US has already sanctioned about 300 Chinese companies on various vague and elusive reasons regarding national security and human rights, among others.

Also, SMIC is being criticized by some on Chinese social media for not standing up to the US crackdown more fiercely, after its statement on Saturday noted that it was open to communicate with the US government to address misunderstandings.