United States firms banned from supplying Chinese smartphone chip maker


So far, Washington has imposed tariffs on $200 billion of Chinese goods and Beijing retaliated with tariffs on $60 billion of United States goods and stopped buying American oil.

The US department of commerce has issued an edict that effectively bans American companies exporting technology to Chinese DRAM maker Fujian Jinhua Integrated Circuit Company. It explained the ban was put in place because Fujian Jinhua "poses a significant risk of becoming involved in activities that are contrary to the national security interests of the United States".

USA hardware maker Micron Technology has repeatedly accused Fujian Jinhua, and its Taiwanese partner United Microelectronics Corp (UMC), of stealing its chips designs [1, 2].

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"When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security".

Jinhua was only founded in 2016, but it's been expanding fast. The company has invested $5.65 billion to build a factory in China devoted to producing memory chips.

However, the Commerce Department's export ban could end up limiting the Chinese company's development. The company has now been put on what is known as an Entity List, which will require Jinhua to apply for a license in order to receive USA exports of commodities, software, and technology. The move is likely futile as "such license applications will be reviewed with a presumption of denial", Commerce says.