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The USA Imposes Restrictions To Monitor Exports Of SMIC!

Restrictions imposed by US to monitor the exports of SMIC
Source: Daily Sun

SMIC Faces Restrictions Of Import Of Technologies

The USA Imposes Restrictions To Monitor Exports Of SMIC!: The United States has imposed restrictions on the export to Chinese semiconductor giant SMIC. Any technology that has to be sold to the chipmaker foundry company needs to be approved first.

This step comes as a series of acts of seeking technological dominance over Bejing by The US. The department of Commerce has made licence mandatory for exporting some certain technologies to SMIC.

Why Is The US Doing This?

Various rules were mentioned in a letter that got sent to SMIC on this Friday. The report also says that there is a risk that China might use those technologies for military purposes. Donald Trump, the President of the US, is showing more significant concern as the military aims of Bejing are now inclining more towards private companies.

A spokesperson with its Bureau of Industry and Security has mentioned that they will continuously keep an eye on anything that might cause a potential threat later. They will also take any action to protect US national security and foreign policy interests.

Similar Restrictions On Chinese Companies

It comes out just after Trump decides to ban download of apps like TikTok and WeChat. TikTok is a Chinese-owned video-sharing app which got considered to raise national security concerns. It also looks like a war of dominance that has been going on forever between the US and China.

The US Commerce Department has export restrictions designed to cut off supplies of Chinese telecom-equipment maker Huawei Technologies Co. Huawei is having access to global semiconductor supplies. The Trump government raised concern in May 2020 to cut-off these supplies as soon as possible.

The dependence of China on the US has been a problem for China for a while. With SMIC, Bejing can one day get self-reliance in the semiconductor field.

Also, read the US And Maldives Sign A Defence Cooperation Pact As China Tried To Gain Influence In Indian Ocean.

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