Post by account_disabled on Feb 20, 2024 5:12:35 GMT -5
The trade war between the United States and China continues and new companies are affected. After the vetoes of Huawei or TikTok , it is the turn of SMIC, the largest chip manufacturer in the Asian giant , as reported by the Financial Times . The United States Government is going to sanction this company by imposing restrictions on its exports , since it considers it an "unacceptable risk" that its products may be used for military purposes by the Chinese army. The British newspaper cites as a source a letter that the United States Department has supposedly sent to the Shanghai-based company, although the latter claims to have not received any official notification , and denies its relationship with the Asian country's army, stating that it does not is dedicated to producing tools for military purposes and the use is exclusively for the civilian population.
Read more: Oracle announces it will become a minority investor in TikTok Global after Trump signals approval This sanction will mean that companies that want to work with SMIC products will have to receive an individual license . Among SMIC's US customers that may be affected are chip companies such as Qualcomm or Broadcom. In this way, SMIC has become Middle East Phone Number List the second largest Chinese technology company to face obstacles from the United States , after Huawei was banned from accessing high-end chips when it was blacklisted last year. The possibility of a veto against this chip manufacturer had been discussed since the beginning of this month; in fact, its shares fell 23% when the press began to publish the rumors.
Already at that time, the Asian company was open to dialogue with US government authorities to resolve any conflict. Ultimately, this will has not served much purpose. Although SMIC insists that its products are for civilian use, the Pentagon sees them as a threat considering that there is a relationship with China's army . Read more: This measure by Trump could create internet censorship in the US like the one its geopolitical rival, China, already has: this is how the recently announced 'Clean Network' works In addition, the United States Department of Commerce stated this Saturday that they are constantly working to locate and evaluate any potential threat that endangers the national security and foreign policy interests of the North American country.