UPDATE: China lashes out at U.S. for considering blacklisting SMIC…
On Monday, Chinese Foreign Ministry spokesman Zhao Lijian accused Washington of “blatant hegemony,” adding that Beijing was “firmly opposed” to such actions, wrote CNBC.
“China has made a solemn stand on (the) U.S.′ unprovoked suppression on Chinese companies,” Zhao told reporters, according to a CNBC translation of his comments in Mandarin. “For a period of time, the U.S. has generalized the concept of national security, used state power to set all kinds of restrictions on Chinese companies.”
“What the U.S. has been doing uncovers the fig leaf of market economy and fair competition which the U.S. has long been touting,” he added. “This not only breaks international trade rules, global industry chain, supply chain and value chain, but also spoils national interests and image of the U.S. itself.”
The Trump administration, in its zeal to halt Chinese corporate espionage and other mercantile tactics, is reviewing whether to blacklist China’s largest semiconductor company, SMIC.
POTUS is angry about China unleashing the Chinese coronavirus on the U.S. in an attempt to prevent Trump’s re-election. Trump has also had a long-term goal of, as he says, ‘preventing China from ripping us off’, meaning stealing our technology, and forced technology transfer.
The Department of Defense is in discussions over whether SMIC should be added to the Commerce Department’s entity list, which essentially restricts those companies from receiving specific goods made in the United States. The U.S. entity list now includes more than 300 China-based companies.
“DoD is currently working with the interagency in assessing available information to determine if SMIC’s actions warrant adding them to the Department of Commerce’s Entity List,” a Defense Department spokesperson said. “Such an action would ensure that all exports to SMIC would undergo a more comprehensive review,” reported CNBC.
A report last month by SOS International, a Virginia-based defense contractor, claimed SMIC had ties to China’s defense sector, according to people who spoke to The Wall Street Journal. SOS also said Chinese military researchers have disclosed in research papers that they use SMIC technology to manufacture chips, The Wall Street Journal reported.
In a statement Saturday, SMIC said it was “in complete shock and perplexity to the news” and that it “provides services solely for civilian and commercial end-users and end-uses.”
“We have no relationship with the Chinese military,” SMIC wrote, adding “Any assumptions of the Company’s ties with the Chinese military are untrue statements and false accusations.”
“SMIC is open to sincere and transparent communication with the U.S. Government agencies in hope of resolving potential misunderstandings,” the firm wrote, reported CNBC.