The US trade embargo on Chinese companies Huawei and ZTE was just the beginning and will be taken further. According to Reuters, the Trump administration has named one of the world's largest chip companies. Several companies, including China's semiconductor manufacturing International Corp (SMIC), are being blacklisted.
The reason for this is said to be the alleged links of these companies with the Chinese military and thus to prevent their access to US investors. Another Reuters report said that the US Department of Defence was planning to blacklist four companies, bringing the number of such Chinese companies to 35.
This month, President Donald Trump signed an executive order, effective January 11, barring US investors from buying securities from companies on the defence blacklist. How long will this list be updated but it will include SMIC, China National Offshore Oil Corp (CNOOC), China Construction Technology and China International Engineering Consulting Corp.
CMIC has a 4% share of the global chip market and its customers in the US include large corporations such as Qualcomm and Broadcom. SMIC is already facing US sanctions. In September this year, the US Department of Commerce imposed restrictions on US exports to the company.
The addition of new Chinese companies to the blacklist would be part of the Trump administration's tough stance against Chinese technology companies, including Huawei, ZTE and, to a lesser extent, Bite Dance. It is unknown at this time what he will do after leaving the post. she does.
If the US blacklists SMIC, the trade war between the US and China will intensify, while the company will also face severe difficulties. In fact, in doing so, it will harm Huawei and other Chinese technology companies China, on the other hand, will retaliate by targeting US companies that rely on Chinese equipment in retaliation.
The United States last year blacklisted Huawei and made access to US parts and technology conditional on the issuance of licenses. The sanctions were tightened in May this year by companies using US technology around the world. As a result of US sanctions, Huawei is now facing problems in making processor chips for its smartphones.
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