US sets restrictions on China’s biggest chipmaker, citing military worries

The Beijing branch of Semiconductor Manufacturing International Corporation.

The Beijing branch of Semiconductor Production International Corporation.

Su Weizhong/Getty Images.

United States wariness of Chinese tech business was highlighted again Friday, when the Commerce Department sent out a letter to business in the states supposedly notifying them they need to get a license prior to exporting specific products to China’s biggest chipmaker, due to the fact that of problems about military use of technology.

The Commerce Department stated in the letter that exports to Semiconductor Production International Corporation “may posture an unacceptable danger of diversion to a military end usage in the People’s Republic of China,” according to a Saturday report by The New york city Times.

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In 2015, the US put restrictions on business offering gear to Chinese telecoms big Huawei, over issues about Huawei’s relationship with the Chinese federal government and fears that its equipment may be utilized to spy on other countries and business.

And popular video app TikTok, owned by Chinese business ByteDance, is currently facing a potential constraint in the United States due to the fact that of issues that the user information it collects may be shared with China’s communistgovernment Both Huawei and ByteDance have actually called such problems unwarranted.

The Times keeps in mind that though SMIC is China’s a lot of technically ingenious producer of semiconductors, it lags years behind market-leading chipmakers and can’t make chips that support the most cutting-edge applications. And for the processors it does make, it counts on gadgets and software application from American business, the Times specified.

Asked About the Commerce Department’s letter and the brand name-new export constraints, a representative for the Commerce Department’s Bureau of Market and Security stated in a statement to CNET that the BIS can’t comment “on any specific matter.”

The BIS “is continuously keeping an eye on and assessing any prospective hazards to United States national security and diplomacy interests,” the representative added, and “will take appropriate action as required,” together with its interagency partners.

SMIC didn’t immediately react to CNET’s demand for comment, however a spokesperson for the business notified the Times that SMIC makes chips specifically for civilian and commercial functions and has no relationship with China’s militaries.

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