FEATURED:

US restricts exports to Chinese semiconductor firm

US restricts exports to Chinese semiconductor firm
© iStock illustration

The U.S. Commerce Department announced Monday that it is restricting U.S. exports to the Chinese semiconductor firm Fujian Jinhua Integrated Circuit Company, Ltd.

The firm "poses a significant risk of becoming involved in activities that are contrary to the national security interests of the United States," according to the department's press release.

Jinhua has been added to the department's Entity List.

ADVERTISEMENT

"When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security," Secretary of Commerce Wilbur RossWilbur Louis RossOn The Money: Amazon taps New York, Northern Virginia for new offices | What it means for the DC area | Dems target vulnerable commerce chief | Earmarks look to be making a comeback Trump eyes post-midterm shakeup The Hill's Morning Report — Presented by T-Mobile — Congress returns to leadership races, lame-duck drama MORE said in Monday's statement. "Placing Jinhua on the Entity List will limit its ability to threaten the supply chain for essential components in our military systems.”

Through its use of what is likely American technology, Jinhua "is nearing completion of substantial production capacity for dynamic random access memory (DRAM) integrated circuits,"  the release charges.

"The additional production, in light of the likely U.S.-origin technology, threatens the long term economic viability of U.S. suppliers of these essential components of U.S. military systems."

Now that Jinhua has been added to the Entity List, any exports or transfers to Jinhua will have to be licensed.

Tensions have been relatively high between China and the U.S. in recent weeks and the U.S. has added multiple other Chinese companies to the Entity List this year.

The U.S. sent two warships through the Straight of Taiwan last week after a Chinese destroyer  reportedly aggressively maneuvered towards a U.S. ship in disputed waters earlier this month.

Earlier this month, Beijing canceled a meeting with Defense Secretary James MattisJames Norman MattisOvernight Defense — Presented by Raytheon — First lady's office pushes for ouster of national security aide | Trump taps retired general as ambassador to Saudis | Mattis to visit border troops | Record number of female veterans to serve in Congress Trump eyes post-midterm shakeup First lady's office says Bolton aide 'no longer deserves the honor' of serving White House MORE and President TrumpDonald John TrumpDeath toll in Northern California wildfire rises to 48: authorities Graham backs bill to protect Mueller Denham loses GOP seat in California MORE accused China of meddling in the 2018 midterm elections, which China has denied.

Economically, the two countries have been locked in a tense trade war, with each country slapping the other with escalating tariffs.