The US has imposed another ban on another Chinese firm. This time the export restrictions have targetted Semiconductor Manufacturing International Corp (SMIC), China’s largest semiconductor foundry based company.
According to a Bloomberg report, the recent ban will deal another blow to China’s technology industry and are indicative of the rising friction over intellectual property and national security claims. Similar to the situation Huawei is in, US based firms will now require a license to export certain products to Chinese chipmaker. Apparently, the reason for the recent sanction is due to an “unacceptable risk,” as these products might be used for military purposes.
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The risk of military use was reported by the Financial Times, which cited a letter from the US Commerce Department that was sent to the company. In an email statement, SMIC said that it had yet to receive any official notice of the sanctions and has no relations with the Chinese armed forces. It further added that it does not manufacture any military grade goods or products.
The new regulations imposed on SMIC marks the rise in trade tensions between the US and China. In recent times, the political frictions between the two superpowers have led to various clashes, with the Coronavirus pandemic only making matters worse. The Trump Administration has already reinforced various restrictions against Huawei, although, SMIC has yet to face a similar degree of treatment. However, that might soon change as the US might be planning on taking further actions and adding the semiconductor giant to the “Entity List” as well.
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