Defense Department of US considering to impose import restrictions on SMIC

China’s largest manufacturer of semiconductors is in great trouble after the reports suggest that Trump’s administration may impose export restrictions on it. The report came from the Defence Department. Discussions are taking place upon adding SMIC into the Commerce Department’s entity list. Essential restrictions are imposed on the companies included in this list. The restrictions are imposed from receiving specific goods made in the United States. There are more than 300 China-based companies included in the Commerce Department’s entity list.

As per the representative of Defense Department, “DoD is currently working with the interagency in assessing available information to determine if SMIC’s actions warrant adding them to the Department of Commerce’s Entity List,”. The main motive of this move is to put pressure on the technology firms of China. This move will also provide superiority to the US in the tech battle taking place between Washington and Beijing. US officials have accused the Chinese firm of collecting sensitive information about Americans. Although, the Chinese Communist Party has cleared the air and said they do not store any sensitive information and have no ties with these companies.

As per a recent report made by a Virginia based Defence Contractor, it was clearly stated that China’s defence sector was using SMIC. Chinese military researchers have also disclosed that they were using SMIC to manufacture chips. The Wall Street Journal reported. Reacting to the report, SMIC said that they are completely shocked. They addressed the issue and declared that they only provide services for civilian and commercial uses. Further, said that they have no relationship with the Chinese military. Hence, discarded all of the accusations and marked them false. Also, stated that they have transparent and sincere communication with the United State’s Government agencies. SMIC is continually trying its best to resolve all of the misunderstandings.