Chinese chip maker Fujian Jinhua added to U.S. export ban
Chinese chip maker Fujian Jinhua added to U.S. export ban
Trump hits Chinese chipmaker with export ban, still expects ‘great deal’ with Beijing
02 November, 2018, 09:53
President Donald Trump has imposed tariffs of up to 25 percent on $250 billion of Chinese goods in an effort to pressure Beijing to roll back those plans. American officials worry they might erode US industrial leadership.
The restriction is similar to the Commerce Department's move that almost put Chinese telecommunication equipment company ZTE Corp out of business earlier this year, . after it was cut off from USA suppliers.
The move could cripple Jinhua, which relies on American components for its semiconductors, and followed similar action taken by the Commerce Department this year to block sales of components to ZTE, a Chinese telecom company.
Commerce says "The move is likely futile as such license applications will be reviewed with a presumption of denial".
"We hope the United States will do something that serves the two sides' interest and helps improve mutual trust, instead of the other way around", said a ministry spokesman, Lu Kang.
ZTE had violated a deal to settle violations of sanctions on North Korea and Iran, . but was allowed to resume purchases of US products after a revised settlement and a one billion dollar fine.
Calls to Fujian Jinhua's offices rang unanswered Tuesday and there was no immediate response to an inquiry made through their website.
"This appears to be a dramatic expansion of the use of the entity list for economic purposes", he said, explaining that the entity list had traditionally been used to prevent imminent violations of USA export control laws.
Ross said the ban would limit the company's ability to "threaten the supply chain for essential components in our military systems". ZTE agreed to pay a large fine, reshuffle its leadership and undergo compliance monitoring by the United States. Earlier in the year, the largest US supplier of DRAM chips, Micron Technology Inc. Micron sued Jinhua in December in federal court in California.
The new restrictions mean U.S. firms will need special approval to export products intended for use by state-owned Fujian Jinhua Integrated Circuit Company, Ltd., according to a statement.
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