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| Trump wants to add SMIC to the blacklist |
The Trump administration is preparing to blacklist the Chinese company SMIC-International Semiconductor Manufacturing Corporation on the alleged Chinese military companies.
This restricts SMIC visits to US investors and the escalating tension is linked to Beijing's Presidential Area Code (Biden).
The Ministry of Defense plans to place four other Chinese companies under the ownership or control of the Chinese army, bringing the number of affected Chinese companies to 35.
President Trump signed an executive order earlier this month prohibiting US investors from buying companies blacklisted for defense.
The new package of products the Department of National Defense wants to add includes the China State Construction Technology Corporation, China International Engineering Consulting Corporation, International Semiconductor Manufacturing Corporation, and China National Offshore Oil Corporation.
SMIC said: We continue to have a constructive and open exchange of views with the United States government. Our products and services are used for civil and commercial purposes only and have no relationship with the Chinese military. We do not manufacture products for military users.
According to estimates by market research firm TrendForce, SMIC has a share of about 4% of the global chipmaking market. US customers include Qualcomm and Broadcom.
The company was delisted from the New York Stock Exchange in May 2019, but said the move was due to limited trading volume and high administrative costs rather than a trade war between China and the United States or the US government's goal of Huawei and other Chinese companies. Blacklist of technology companies.
The Chinese company was hit by export restrictions that prevented it from purchasing essential equipment from US suppliers, and informed shareholders in early October that the export restrictions put in place by the United States Department in the United States Office, with Industry and Security may be materially harmful affecting their production.
Minimum wage relies heavily on equipment from US suppliers.
In September, the US Department of Commerce notified some companies that they would need a license before they could provide products and services to SMIC because the company believed that the equipment shipped to SMIC could be used for military purposes.
The executive order and possible blacklisting of new companies is in line with the Trump administration's strong stance on Chinese tech companies such as Huawei, ByteDance and ZTE.
The Trump administration says these companies pose a potential national security threat due to their alleged ties to the Chinese government and military.