The United States blacklisted dozens of Chinese companies, including the large chip manufacturer SMIC, on Friday. This reports Reuters news agency based on insiders.
The move appears to be President Donald Trump’s ultimate attempt to make his mark on Chinese-American relations.
In total, the US government is expected to add about 80 different companies and affiliates to the so-called entity list. This would include companies associated with the Chinese army. Some companies are also said to have helped construct artificial islands in the South China Sea. With practices like that, China is trying to support territorial claims in those waters.
The Americans have long been targeting SMIC, the largest chip company in the People’s Republic. Last month, the Ministry of Defense already added the company to a blacklist of alleged Chinese military companies.
The new addition to the entity list would force SMIC to apply for a special license from the Department of Commerce before a US supplier could send the company essential goods.
Previously, the large technology group Huawei Technologies, among others, was already blacklisted by Washington, partly due to alleged risks of espionage for the Chinese government. American companies are now no longer allowed to sell sensitive technology to Huawei.
Trump also recently banned US investments in military-owned or military-controlled Chinese companies. In this way, Trump is trying to tighten the reins in the hardline towards China in the last few weeks of his presidency. His successor Joe Biden is also put on the block when it comes to an uncompromising approach to China.