US Limits Tech Exports to Chinese Firm on Security Grounds

Advertisement
By Associated Press | Updated: 1 November 2018 11:20 IST
Highlights
  • Controls were imposed Monday on Fujian Jinhua Integrated Circuit Co.
  • US is concerned competition could drive US tech suppliers out of business
  • Beijing has spent heavily to build up Jinhua and other chip makers

The Trump administration has imposed restrictions on technology exports to a state-supported Chinese semiconductor maker, citing national security grounds amid a mounting tariff battle.

The controls imposed Monday on Fujian Jinhua Integrated Circuit Co. reflect concern Chinese competition could drive American technology suppliers out of business, leaving the military without secure sources of components.

Advertisement

Beijing has spent heavily to build up Jinhua and other chip makers as part of efforts to transform China into a global leader in robotics, artificial intelligence and other technology industries.

The United States, Europe and other trading partners say Beijing's tactics violate its market-opening obligations. American officials worry they might erode US industrial leadership.

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.

Jinhua is completing "substantial production capacity" for integrated circuits, possibly using US technology, which "threatens the long-term economic viability of US suppliers of these essential components of US military systems," said a Commerce Department statement.

Advertisement

The company was added to the department's "Entity List," which will require it to obtain an export license for all software, technology and commodities, the Commerce Department said. It said such applications "will be reviewed with a presumption of denial."

That "will limit its ability to threaten the supply chain for essential components in our military systems," Commerce Secretary Wilbur Ross said in the statement.

Advertisement

China's foreign ministry said it hoped foreign governments would treat Chinese companies "reasonably and fairly."

"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.

Advertisement

Calls to Fujian Jinhua's offices rang unanswered Tuesday and there was no immediate response to an inquiry made through their website.

The order marks the second US action this year blocking technology exports to a Chinese buyer.

ZTE Corp., China's second-biggest maker of telecoms equipment, faced possible bankruptcy this year after Washington imposed a seven-year ban on sales of US technology to the company over its exports to Iran and North Korea.

American authorities lifted the ban in July after ZTE paid a $1 billion (roughly Rs. 7,400 crores) fine, agreed to replace its executive team and hired US-selected compliance officers.

Meanwhile, Jinhua is embroiled in a court battle with US chip maker Micron Technology, which accuses the Chinese company of stealing its technology.

Micron sued Jinhua in December in federal court in California. Jinhua sued the US company the following month in a Chinese court and obtained an order blocking sales of some Micron products.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Samsung Galaxy SmartTag 3 India Launch Timeline Revealed
  2. These Sony Signature Series Walkman Models Launch With Premium Design
  3. Oppo Find X10 Series to Debut in India With This Industry-First Camera Unit
  1. OpenAI AI Model Used Another Wallet’s Ethereum Testnet Funds Without Authorisation, Report Says
  2. Samsung Galaxy SmartTag 3 India Launch Timeline Confirmed by Company Executive
  3. CERT-in Issues Critical Warning After AI Agents Broke Into Indian Organisations' Live Systems
  4. Microsoft Announces $50 Xbox Nano Controller, Launch Set for Next Month
  5. Samsung Galaxy A38 5G Rear Camera Specifications Leaked; May Feature Same Sensors as Galaxy A37
  6. Meta’s Muse Spark Open Model Brings 1M-Token Context Window, Agentic AI Workflows to Apple Mac Studio
  7. Oppo Find X10 Pro Max Confirmed to Launch in India as First Phone With a Triple 200-Megapixel Camera System
  8. Ripple Partners With Cross River to Integrate RLUSD Into Core Banking Platforms
  9. Redmi K100 Officially Confirmed to Launch Later This Month; Pre-Orders Begin
  10. YouTube Music Will Now Display Labels for AI-Generated Music Integrated into the Player
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.