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WASHINGTON: The United States announced on Friday (December 18) that it imposed export controls on 77 Chinese companies, including the country’s largest chip maker, SMIC, restricting their access to American technology because of their alleged ties to the Chinese military.
The announcement in the final weeks of President Donald Trump’s term comes after relations between Washington and Beijing deteriorated under his administration, which saw the United States launch a trade war with China and expand its list of sanctioned entities to a select few. hundreds of Chinese companies and subsidiaries.
In a statement, Commerce Secretary Wilbur Ross said the designations, which restrict the ability of American companies to do business with the companies, are based on a number of charges including human rights abuses, activities by the Chinese military. , particularly in the South China Sea, as well as the theft of American technology.
“China’s intimidating and corrupt behavior both inside and outside its borders harms the national security interests of the United States, undermines the sovereignty of our allies and partners, and violates the human rights and dignity of ethnic and religious minority groups.” Ross said.
“Commerce will act to ensure that US technology, developed and produced in accordance with the principles of the free and open market, is not used for malicious or abusive purposes.”
SMIC has received billions of dollars in support from Beijing and is at the center of its efforts to enhance the country’s technological self-sufficiency.
In a call with reporters, a senior Commerce Department official said Washington has evidence that SMIC has worked with the Chinese military on developing short- and medium-range ballistic missiles and exoskeletons for soldiers, but had been in talks. with SMIC for months. to avoid designation.
“We are adding SMIC to the list of entities primarily because we need to ensure that SMIC customers do not use US intellectual property and manufacturing capabilities to continue to support military-civil fusion efforts within China,” the official said. .
“We just couldn’t stand on the sidelines anymore and watch our adversary use our technologies to support their military capabilities.”
The designation means that US companies must apply for a license before exporting to SMIC, and specifically targets the Chinese company’s ability to procure materials to produce chips of 10 nanometers or less, the best class in the industry.
The drone maker DJI was also targeted “because of its complicity in human rights violations within China,” the official said.
That company owns about 70 percent of the global drone market, and last year the United States Department of the Interior grounded its fleet of company drones amid growing security concerns about Chinese electronics.
On January 20, Trump will hand over power to President-elect Joe Biden, who has said he will stick to his predecessor’s trade policies, at least initially.
