Chinese drone and chip makers contributed to US banned list

Drone maker DJI and chipmaker SMIC are the most recent Chinese companies to be contributed to a United States trade blacklist.

In overall, 77 firms were added to the list – most of them Chinese.

The Entity List is prepared by the United States Department of Commerce, and currently consists of more than 275 China-based companies, including telecoms huge Huawei.

The move is seen as a bold last strike by the outbound United States president, Donald Trump, who has taken a hard line on China.

The US administration said that it had actually enforced export controls on SMIC to limit its access to US innovation due to the fact that of alleged ties to the Chinese armed force.

“We’re adding SMIC to the Entity List mostly due to the fact that we need to make certain US copyright and manufacturing capabilities are not being used by SMIC’s clients to continue to support the military-civil blend efforts within China,” a senior official in the United States Commerce Department said.

The official included that the US had proof SMIC had dealt with the Chinese military on short and medium-range ballistic missiles, and exoskeletons for soldiers.

SMIC was established in 2000, and has actually because ended up being the most popular chipmaker in mainland China.

US companies will now need to look for a special licence from the Commerce Department before exporting items to the company, which will impact its capability to acquire products for producing high-end chips.

The United States government likewise added DJI, among the world’s largest drone makers, to the Entity List, specifying that it believed the firm had actually played a role in human rights violations in China.

The ban does not avoid individuals from buying DJI drones, however it indicates the company will have limitations put on the transfer of any innovations from the United States.

Neither firm has so far discussed the US choice.

The Chinese government has reacted by presenting its own laws which restrict the export of military technologies.

Trade stress between the world’s 2 most significant economies have been going on for numerous years, but have actually intensified in recent months.

Consumer app TikTok, and digital company Tencent – both Chinese – are likewise facing bans within the United States.

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