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DJI, the world’s largest drone company, and SMIC, China’s largest semiconductor foundry, were also included in the list of companies subject to US sanctions.
On the 18th (local time), the Bureau of Industrial Safety (BIS) of the US Department of Commerce added more than 60 Chinese companies to the Entity List, CNN and other major foreign media reported at the same time.
Restricted trade companies were created to restrict the export of technologies or products that could violate the national security of the United States. To do business with any company or institution on this list, you must obtain special permission from the government.
Last year, the Trump administration designated major Chinese companies, including Huawei and ZTE, as trade-restricted companies.
At the time, DJI and others were removed from the list of restricted business companies. However, it has been constantly raised that the next target of the US government will be the major companies in the field of drones and semiconductors.
President Trump, who has been writing a hard line against China, is the latest to link major corporations with trade-restricted companies before retiring in January next year.
With this measure, DJI and SMIC are subject to the same level of sanctions as Huawei. Huawei suffered greatly since last year when supply and demand for important components, including American-made semiconductors, was blocked.
US Department of Commerce “Apply a rejection estimate for technologies less than 10 nanometers”
Commerce Secretary Wilbur Ross stressed that “we cannot allow advanced American technology to aid the military might of an increasingly aggressive hostile state.”
He added: “The state SMIC is a good example of China’s military modernization work using American technology.”
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The Commerce Ministry said advanced technologies below 10 nanometers will be subject to the “presumption of denial” rule. The rejection estimation criterion means maintaining a basic rejection of applications for export licenses related to the national security of the United States.
SMIC has revealed that it has no relationship with the Chinese military. China’s Foreign Ministry has also urged the United States to stop acting wrong, saying it will take necessary steps to protect its rights.
