US Blames Chinese Tech Company, Restricts Exports Over National Security Concerns

US bans exports to Chinese DRAM maker citing national security risk

Trump hits Chinese chipmaker with export ban, still expects ‘great deal’ with Beijing

The US Commerce Department on Monday targeted a Chinese tech company with restrictions to cut off access to US technology, saying the firm could harm US security.

President Donald Trump has imposed tariffs of up to 25 percent on $250 billion of Chinese goods in an effort to pressure Beijing to roll back those plans.

The use of the "entity list" - which governs what companies US firms can do business with - to protect the economic viability of a USA industry appears to be unprecedented, said Washington trade lawyer Douglas Jacobson.

In an attempt to cut off a Chinese state-backed semiconductor maker from U.S. exports of components, software and technology goods, . the U.S. Commerce Department has placed trade restrictions on Fujian Jinhua Integrated Circuit, . adding it to a list of entities that can not purchase such products from U.S. firms.

Now, the Trump administration is taking action "in light of the likely USA -origin technology" that "threatens the long term economic viability of US suppliers of these essential components of US military systems". The company has now been put on what is known as an Entity List, which will require Jinhua to apply for a license in order to receive United States exports of commodities, software, and technology.

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Commerce says "The move is likely futile as such license applications will be reviewed with a presumption of denial".

In a similar move earlier this year, the department blocked sales of component to different Chinese companies including ZTE Corporation.

Fujian Jinhua and Taiwanese partner United Microelectronics Corporation were accused last December by US memory chip maker Micron Technology of stealing Micron chip designs, a case still underway in a California court.

ZTE had violated a deal to settle violations of sanctions on North Korea and Iran, . but was allowed to resume purchases of USA products after a revised settlement and a one billion dollar fine. ZTE agreed to pay a large fine, reshuffle its leadership and undergo compliance monitoring by the United States. Micron sued Jinhua in December in federal court in California.

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