Home America U.S. Blacklists More Than 60 Chinese Firms, Including SMIC

U.S. Blacklists More Than 60 Chinese Firms, Including SMIC

Semiconductor Manufacturing International Corp (SMIC)., drone maker SZ DJI Technology Co. and 60 other Chinese Companies were announced to be blacklisted by the U.S. Commerce Department in order to protect U.S. national security. This action is the result of China’s civil fusion doctrine and links of activities between SMIC and the Chinese industries. 

Commerce Secretary of US later confirmed the news after which the shares of SMIC saw a downfall of 5.2%. Other companies that came under the radar were the ones that included human rights abuses, encouraging militarization, and illegal maritime claim in the South China Sea. A major portion of the banned companies are companies and will share the ban put on Huwaei Technologies that denied them to have any access to U.S. technology. 

The Chinese companies which have been banned have led to the worsening of tensions between the world’s two largest and strongest economies, adding to which was the COVID-19 pandemic.  President Trump was adamant to level more sanctions against China before Biden formally took over the Presidential office. 

China saw these sanctions to be ‘unacceptable’ as stated by the Chinese Foreign Minister. In a video address, he urged the U.S to stop stretching sanctions under the pretext of national security.

SMIC is a world-class semiconductor industry based in Beijing that was trying to remove its dependence on American technology. This try for independence is seen by the U.S. as a geopolitical threat. In return, China has started planning to provide support to those working in the semiconductor industry in its five-year plan to increase its self-sufficiency in chip manufacturing.