The United States is set to add dozens of Chinese companies, including the country's top chipmaker SMIC, to a trade blacklist on Friday.

The move is being seen as the latest in President Donald Trump's effort to cement his tough-on-China legacy. It comes just weeks before Democratic President-elect Joe Biden is set to take office on January 20.

In total, the United States is expected to add around 80 additional companies and affiliates to the so-called entity list, nearly all of them Chinese.

The designations by the Commerce Department are expected to name some Chinese companies that Washington says have ties to the Chinese military, including some helping it construct and militarise artificial islands in the South China Sea, as well as some involved in alleged human rights violations.

The Trump administration's entity list now includes more than 275 China-based firms and affiliates -- Huawei Technologies Co and 150 affiliates, and ZTE Corp over sanction violations, as well as surveillance camera maker Hikvision over suppression of China's Uighur minority.

SMIC, the Semiconductor Manufacturing International Corp, has already been in Washington’s crosshairs.

In September, the Commerce Department mandated that suppliers of certain equipment to the company apply for export licenses after concluding there was an "unacceptable risk" that equipment supplied to it could be used for military purposes.

Last month, the Defence Department added the company to a blacklist of alleged Chinese military companies, effectively banning US investors from buying its shares starting late next year.

SMIC has repeatedly said that it has no relationship with the Chinese military.

(with inputs from Reuters)

The United States is set to add dozens of Chinese companies, including the country's top chipmaker SMIC, to a trade blacklist on Friday. The move is being seen as the latest in President Donald Trump's effort to cement his tough-on-China legacy.

The United States is set to add dozens of Chinese companies, including the country's top chipmaker SMIC, to a trade blacklist on Friday. The move is being seen as the latest in President Donald Trump's effort to cement his tough-on-China legacy. It comes just weeks before Democratic President-elect Joe Biden is set to take office on January 20. In total, the United States is expected to add around 80 additional companies and affiliates to the so-called entity list, nearly all of them Chinese. The designations by the Commerce Department are expected to name some Chinese companies that Washington says have ties to the Chinese military, including some helping it construct and militarise artificial islands in the South China Sea, as well as some involved in alleged human rights violations. The Trump administration's entity list now includes more than 275 China-based firms and affiliates -- Huawei Technologies Co and 150 affiliates, and ZTE Corp over sanction violations, as well as surveillance camera maker Hikvision over suppression of China's Uighur minority. SMIC, the Semiconductor Manufacturing International Corp, has already been in Washington’s crosshairs. In September, the Commerce Department mandated that suppliers of certain equipment to the company apply for export licenses after concluding there was an "unacceptable risk" that equipment supplied to it could be used for military purposes. Last month, the Defence Department added the company to a blacklist of alleged Chinese military companies, effectively banning US investors from buying its shares starting late next year. SMIC has repeatedly said that it has no relationship with the Chinese military. (with inputs from Reuters)

US to blacklist dozens of Chinese firms including SMIC, report says

The United States has imposed restrictions on exports to China’s biggest chip maker SMIC after concluding there is an “unacceptable risk” equipment supplied to it could be used for military purposes.

Suppliers of certain equipment to Semiconductor Manufacturing International Corporation will now have to apply for individual export licenses, according to a letter from the Commerce Department dated Friday and seen by Reuters.

The latest move marks a shift in U.S. policy from earlier this year, when applicants seeking “military end user” licenses to sell to SMIC were told by the Commerce Department that the licenses weren’t necessary, according to three people familiar with the matter.

SMIC said it had not received any official notice of the restrictions and said it has no ties with the Chinese military.

“SMIC reiterates that it manufactures semiconductors and provides services solely for civilian and commercial end-users and end-uses,” SMIC said.

“The Company has no relationship with the Chinese military and does not manufacture for any military end-users or end-uses.”

SMIC is the latest leading Chinese technology company to face U.S. trade restrictions related to national security issues or U.S. foreign policy efforts. Telecoms giant Huawei Technologies had its access to high-end chips curtailed by its addition to a Commerce Department blacklist known as the entity list.

SMIC’s new designation is not as severe as being blacklisted, which makes it difficult to get any export license approved.

The Pentagon earlier this month, Reuters was first to report, said it was working with other agencies to determine whether to blacklist SMIC for its purported links to the Chinese military.

U.S. companies including Lam Research, KLA Corp and Applied Materials, which supply chipmaking equipment, may now need to get licenses to ship certain goods to SMIC.

It is unclear which suppliers received the letter, but typically once the Commerce Department comes to the conclusion that there is a risk of military use or diversion, it sends that information to the companies.

The Commerce Department’s Bureau of Industry and Security declined on Saturday to comment specifically on SMIC, but said it was “constantly monitoring and assessing any potential threats to U.S. national security and foreign policy interests”.

The administration has increasingly trained its focus on Chinese companies that bolster Beijing’s military. Last month, the United States blacklisted 24 Chinese companies and targeted people it said were part of construction and military actions in the South China Sea, its first such sanctions against Beijing over the disputed strategic waterway.

The United States has imposed restrictions on exports to China’s biggest chip maker SMIC after concluding there is an “unacceptable risk” equipment supplied to it could be used for military purposes.

The United States has imposed restrictions on exports to China’s biggest chip maker SMIC after concluding there is an “unacceptable risk” equipment supplied to it could be used for military purposes. Suppliers of certain equipment to Semiconductor Manufacturing International Corporation will now have to apply for individual export licenses, according to a letter from the Commerce Department dated Friday and seen by Reuters. The latest move marks a shift in U.S. policy from earlier this year, when applicants seeking “military end user” licenses to sell to SMIC were told by the Commerce Department that the licenses weren’t necessary, according to three people familiar with the matter. SMIC said it had not received any official notice of the restrictions and said it has no ties with the Chinese military. “SMIC reiterates that it manufactures semiconductors and provides services solely for civilian and commercial end-users and end-uses,” SMIC said. “The Company has no relationship with the Chinese military and does not manufacture for any military end-users or end-uses.” SMIC is the latest leading Chinese technology company to face U.S. trade restrictions related to national security issues or U.S. foreign policy efforts. Telecoms giant Huawei Technologies had its access to high-end chips curtailed by its addition to a Commerce Department blacklist known as the entity list. SMIC’s new designation is not as severe as being blacklisted, which makes it difficult to get any export license approved. The Pentagon earlier this month, Reuters was first to report, said it was working with other agencies to determine whether to blacklist SMIC for its purported links to the Chinese military. U.S. companies including Lam Research, KLA Corp and Applied Materials, which supply chipmaking equipment, may now need to get licenses to ship certain goods to SMIC. It is unclear which suppliers received the letter, but typically once the Commerce Department comes to the conclusion that there is a risk of military use or diversion, it sends that information to the companies. The Commerce Department’s Bureau of Industry and Security declined on Saturday to comment specifically on SMIC, but said it was “constantly monitoring and assessing any potential threats to U.S. national security and foreign policy interests”. The administration has increasingly trained its focus on Chinese companies that bolster Beijing’s military. Last month, the United States blacklisted 24 Chinese companies and targeted people it said were part of construction and military actions in the South China Sea, its first such sanctions against Beijing over the disputed strategic waterway.

US tightens exports to China's chipmaker SMIC, citing risk of military use

Shares in China's Semiconductor Manufacturing International Corp tumbled on Monday in response to reports of potential sanctions against the company from Washington.

Shares of China's SMIC plunge in Hong Kong, Shanghai on U.S. blacklist fears

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