Chinese chipmaker, Semiconductor Manufacturing International Corp (SMIC) may have been under the searchlight of the US Defense Department and a new proposal could see the company being shut out from accessing key supplies from US producers. The Defense Department says that some current regulatory loopholes are being exploited by SMIC to buy critical United States technology that could be used for military purposes.
However, it is reported that the Defense Department’s proposal is not having a smooth ride as some US Commerce Department officials are making efforts to block the new proposal. SMIC is already holding the wrong end of the stick, as it has been previously blacklisted from accessing advanced manufacturing equipment from US suppliers on suspicion of ties to the Chinese military. SMIC continues to reject the claims that it has any links with the Chinese military.
Chinese companies have continued to endure stringent scrutiny and blacklisting due to suspicion that they may be fronts for the Chinese government or its military. More Chinese companies could be added to the US blacklist in the coming months. These blacklists are captured by the Commerce Department’s Entity List and the Treasury Department’s list banning US investment.
The blacklisting move comes amidst growing tensions between Beijing and Washington. Some of the issues are also related to alleged human rights violations in China’s Xinjiang region. An official response from SMIC is still expected at this time.
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(via)
