The US adds dozens of Chinese companies to a trade list

Video source: YouTube, Reuters

With Alexandra Alper, David Shepardson and Humeyra Pamuk

WASHINGTON (Reuters) – The United States added dozens of Chinese companies, including the country’s leading chipmaker SMIC and Chinese drone maker SZ DJI Technology Co. Ltd, to a trade blacklist on Friday as the President’s administration US Donald Trump stresses China over in his final round. weeks in office.

Reuters first reported the addition of SMIC and dozens of additional companies eary on Friday. The move is seen as the latest in Trump’s Republican efforts to consolidate his tight-on-China legacy as part of a lengthy fight between Washington and Beijing over trade and a number of economic issues.

The U.S. Department of Commerce said the action against SMIC “comes from China’s civilian-military fusion (MCF) teaching and evidence of activity between SMIC and anxiety groups in China’s military industrial building. ”

The division also said it was adding the world’s largest drone company to the list along with AGCU Scientech; China National Scientific Instruments and Instruments, and the Kuang-Chi Group for their assertion that they enable “human rights abuses in China through abstract genetic collection and study or high-tech study. ”

The companies did not immediately comment.

Commerce Secretary Wilbur Ross said in a statement that the region would not allow “advanced U.S. technology to help build an ever-increasing number of enemy weapons.”

Ross said the government would deny licenses to prevent SMIC from accessing technology to produce semiconductors at technologically advanced levels: 10 nanometers or lower.

In a speech to the Asian Association on Friday, China’s State Councilor Wang Yi, who is also the country’s foreign minister, noted the growing list of U.S. sanctions and called on Washington to stop imposed the “tribal ban” of Chinese companies.

The Commerce Department released a list of 77 companies and affiliates to the so-called entity list, including 60 Chinese companies. Earlier, Reuters reported that the region was supplying about 80 companies, mostly Chinese.

China’s foreign ministry said that, if true, the blacklist would be evidence of U.S. violence on Chinese companies and that Beijing would continue to take “necessary steps” to protect its rights.

“We urge the U.S. to stop its fraudulent behavior from causing unnecessary harassment of foreign companies,” ministry spokesman Wang Wenbin said at a regular press conference in Beijing on Friday.

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SMIC did not immediately respond to requests for comment.

The designations with the Department of Commerce include some organizations in China that enable human rights abuses and some that help it build and militarize artificial islands in the South China Sea. , the group said.

He also named organizations that acquired objects of U.S. origin in support of People’s Liberation Army programs, and organizations and individuals involved in the theft of U.S. trade secrets.

Companies previously added to the list include telecommunications equipment giants Huawei Technologies Co and 150 affiliates, and ZTE Corp. on sanctions breaches, as well as surveillance camera maker Hikvision about the abolition of Uighur minority in China.


Shares in SMIC, formally Semiconductor Manufacturing International Corp., fell 5.2% in Hong Kong on Friday, while the company’s listed shares in Shanghai declined 1.8%. Indices in both markets were down less than 1%.

SMIC had already been in Washington crosshairs.

In September, the Commerce Department ordered suppliers of special equipment to the company to apply for export licenses after it was determined that there was an “undue risk” that equipment that had been give it to be used for military purposes.

Last month, the company’s Department of Defense added a blacklist of accused Chinese arms companies, effectively barring U.S. investors from buying their shares starting late next -year.

SMIC has reiterated that it has no affiliation with the Chinese military.

The entity’s listing designation requires SMIC to seek special approval from the Department of Commerce before a U.S. supplier could send it a major product, part of a claim by the administration to block access to U.S. chip-making technology.

The Department of Commerce added nearly a dozen SMIC-affiliated companies to the entity list.

SMIC is the largest Chinese chip manufacturer but it follows Taiwan Semiconductor Manufacturing Co., the industry’s market leader. He has tried to build furnaces to make computer chips that will be able to compete with those at TSMC.

Ties between Washington and Beijing have become increasingly unnatural over the past year as the world’s two major economies spurred as Beijing handled the coronavirus revolution, enforcement of national security law in Hong Kong and rising tensions in the South China Sea.

Reporting by David Shepardson and Alexandra Alper; Additional recitation by Humeyra Pamuk, Mike Stone, Karen Freifeld, Tom Daly Gabriel Crossley and Tom Westbrook; Written by Humeyra Pamuk and David Shepardson; Edited by William Mallard, Steve Orlofsky and Jonathan Oatis.


Source: Reuters

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