Sources: US government to blacklist bushel of Chinese firms including SMIC

Sources: According to the sources, the United States (US) decided to blacklist a bushel of Chinese firms. The list of companies including the country’s top chipmaker Semiconductor Manufacturing International Corporation (SMIC), and affiliates of the company. It is one of the largest state-owned semiconductor companies owned by China located in Shanghai.   

US President Donald Trump decided to weaken China’s legacy after the Covid-19 pandemic. However, the decision came before Democratic President Joe Biden to take office on January 20th, 2021.  

Besides, the US government decided to add almost 80 companies and their affiliates to the so-called entity list. The list includes one of the telecom giants Huawei Technologies Company, ZTE Corporation, and 150 affiliates. Besides, the largest surveillance camera manufacturing company. Hikvision is also on the list for vanquishing China’s Uighur minority.

Commenting on the blacklisting of Chinese companies, China’s foreign ministry said, if the news is true, it is one of the examples of U.S subjection on Chinese companies. However, we will take “necessary actions” to protect the rights of every individual of the company.

“We request the U.S government to withdraw its oppression behaviour on Chinese companies,” said Wang Wenbin, a ministry spokesman, Beijing.

On the other side, the designations of the Commerce Department are expected to change their names to some Chinese companies. While the company says, we have tie-ups the Chinese military. The tie-ups include construction and militarization of artificial islands located in the South China Sea, sources said.

SMIC:

In September 2020, the commerce department gave mandates to those companies regarding equipment supplies. The companies need to apply for an export license. But, some companies export equipment and used it for military purposes.    

While the Defense Department included the company in the blacklist and professed as a Chinese military company. But, SMIC company continuously saying, that we don’t have any relationship with the Chinese military.

However, the Tie-up between Washington and Beijing has grown rapidly over the past few years. The world’s top two economies disputed due to the coronavirus outbreak, imposition of national security law in Hong Kong, and rising tensions in the South China Sea.