Is US After China’s Semiconductor Industry?

The United States wants to impose restrictions on SMIC, China’s largest chip maker. The US Department of Commerce has banned companies from supplying SMIC with components and equipment without a special license. The department sent a letter about the new policy to the largest US suppliers. Earlier, similar restrictions were imposed on Huawei.

A number of American media outlets have got hold of the Department of Commerce’s letter, which stressed that the Chinese Semiconductor Manufacturing International Corporation (SMIC) was being allowed to produce dual-use products.

Back in April, the US authorities revised export restricting rules. If earlier the United States restricted only a few categories of exports, for example, military aircraft engines, according to the new rules, any products, components or software that the military-industrial complex could theoretically use may be subject to restrictions. Washington has justified the restrictions claiming that the United States shouldn’t in any way contribute to its rival’s military enhancement.

SMIC denies any association with the Chinese military-industrial complex. The company also noted that it hadn’t received any official notification regarding supply restrictions from the American side. However, the US has previously used the pretext of “national security” to impose restrictions on Chinese companies without bothering to provide any concrete evidence. The new rules restricting dual-use technology exports are so vague…

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