U.S. Blacklists SMIC, China’s Top Chip Maker, Plus over 60 Other Entities

The U.S. Commerce Department announced the addition of over 60 more Chinese entities to the export blacklist Friday, including Semiconductor Manufacturing International Corp. (SMIC), China’s largest producer of computer chips.

“This action stems from China’s military-civil fusion (MCF) doctrine and evidence of activities between SMIC and entities of concern in the Chinese military industrial complex,” the Commerce Department explained.

“We will not allow advanced U.S. technology to help build the military of an increasingly belligerent adversary.  Between SMIC’s relationships of concern with the military industrial complex, China’s aggressive application of military civil fusion mandates and state-directed subsidies, SMIC perfectly illustrates the risks of China’s leverage of U.S. technology to support its military modernization,” Commerce Secretary Wilbur Ross elaborated.

“Entity List restrictions are a necessary measure to ensure that China, through its national champion SMIC, is not able to leverage U.S. technologies to enable indigenous advanced technology levels to support its destabilizing military activities,” Ross said.

The Commerce Department said the other entities added to the sanctions list are involved in abusing human rights, militarizing the South China Sea, and participating in the “theft of U.S. trade secrets.”

The Wall Street Journal (WSJ) noted that the blacklist “effectively prohibits SMIC from acquiring technology to build chips with 10-nanometer circuits and smaller, the industry’s top class of chips,” a huge escalation of sanctions pressure against a company heavily backed by the Chinese state. Via – Breitbart

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