Reuters: The US government puts SMIC on its trade blacklist


Reuters: The US government puts SMIC on its trade blacklist

Reuters: The US government puts SMIC on its trade blacklist

News unit EMGblog.com: Bloomberg news agency recently and quoted by Reuters In a report of the Trump administration’s readiness to add the names of two semiconductor companies SMIC and China’s oil and gas company CNOOC to the list of US trade sanctions Notified. Under the new sanctions, the two companies will lose access to American investment because of what they call military ties to the Beijing government. This clearly indicates the last efforts of the Trump administration to limit China, before the change of the government and the effectiveness of Joe Biden.

Reuters, citing a document and three unidentified people familiar with the matter, Report Data that Semiconductor Manufacturing International Corp, abbreviated as SMIC, along with China National Offshore Oil Company (CNOOC) and two other Chinese companies, will soon be blacklisted by the US Department of Commerce, and thus count The companies in this list reach 35 companies.

Of course, it is not yet clear when this new list will be published by the official newspaper of the United States government known as the Federal Register, and the Department of Defense of the United States, as the agent of identifying companies cooperating with the Chinese military, has commented on this matter. has not done. Meanwhile, according to another report from Reuters, Trump is preparing a list of 89 Chinese companies active in the aerospace and other industrial fields under the pretext of military ties with the Chinese government, in order to block their access to capital and technology. is american

According to most analysts, these actions, which take place in the last days of Trump’s presidency, are aimed at making it more difficult for US-China relations to return to before this era. In addition, the existence of such obstacles will make the next US government have more pressure levers to bargain and gain concessions from Beijing.

Previously, last month, the Trump administration, through an executive order, called the Chinese government a danger due to the “increasing misuse” of this country’s capital for the “development and modernization of military, security and intelligence systems”. It was announced for the national security of the United States. According to this decree, which will be implemented from January 11, 2021 (22 January 2019), the investment of companies and the financing of the purchase and sale of shares in 31 Chinese companies will be prohibited; The companies that the US Department of Defense published in June as military partners of the Beijing government.

In response, the Ministry of Foreign Affairs of China called the mentioned executive order a “vicious slander” against the country’s military and civil integrity and promised to protect Chinese companies. According to the spokesperson of the Chinese Foreign Ministry, “this action not only severely damages the rights and interests of Chinese companies, but also exposes the interests of foreign investors, including the owners of US capital, to losses.”

The US Department of Commerce in September this year had imposed export restrictions against SMIC, according to which the companies Americans should have received a license before supplying their products to the largest Chinese chip maker; Because from the point of view of the Department of Industry and Security of this Ministry, providing American parts to SMIC and its subsidiaries is associated with “unacceptable risk regarding military applications”.

These pressures take place in a situation where SMIC has yet to reach the level of its main competitor, TSMC, as a supplier of advanced chips for companies such as Apple is far away. The Taiwanese company, which is considered the world’s largest independent chipmaker, has commercialized 5nm manufacturing technology and is at least two generations ahead of SMIC in terms of technical capabilities.

Accordingly, it seems that the Trump administration is trying to make it more difficult for SMIC to develop technology in order to prevent the most important Chinese chipmaker from gaining strength by cutting off the company’s access to the equipment of American companies, such as Applied Materials. /p>

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