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: US tops 100,000 coronavirus deaths with no end in sight | How lawmaker ties helped shape Fed chairman's COVID-19 response | Tenants fear mass evictions Ross: Trump considering 'whole menu' of options against China on Hong Kong law OVERNIGHT ENERGY: Government predicts busy hurricane season | Report: BLM says oil and gas operators should set their own royalty rates for public lands drilling | Michigan flooding risks damage to hazardous waste sites: report 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: Pentagon watchdog sidelined by Trump resigns | Plan would reportedly bring troops in Afghanistan back by Election Day | Third service member dies from COVID-19 Trump wants troops in Afghanistan back stateside by Election Day: report 'Never Trump' Republicans: Fringe, or force to be reckoned with? MORE and President TrumpDonald John TrumpFauci says his meetings with Trump have 'dramatically decreased' McEnany criticizes DC mayor for not imposing earlier curfew amid protests Stopping Israel's annexation is a US national security interest 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.