U.S. restricts exports to Chinese semiconductor firm Fujian Jinhua
- 5 years ago
Setting up a new front in its trade and tech disputes with China,... the U.S. Commerce Department is blocking a Chinese state-backed semiconductor maker from importing U.S. products to make its chips.
Lee Seung-jae reports.
In an attempt to cut off a Chinese state-backed semiconductor maker from U.S. exports of components, software and technology goods,... the U.S. Commerce Department has placed trade restrictions on Fujian Jinhua Integrated Circuit,... adding it to a list of entities that cannot purchase such products from U.S. firms.
The Commerce Department cited a "significant risk" that the Chinese firm's new memory chip capacity will threaten the viability of U.S. suppliers of chips for military systems.
The restriction is similar to the Commerce Department's move that nearly put Chinese telecommunication equipment company ZTE Corp out of business earlier this year,.... after it was cut off from U.S. suppliers.
ZTE had violated a deal to settle violations of sanctions on North Korea and Iran,... but was allowed to resume purchases of U.S. products after a revised settlement and a one billion dollar fine.
Observers say the latest restriction against Fujian Jinhua is likely to spark new tensions between the two economic powerhouses,... since the company is at the heart of the "Made in China 2025" program to develop new high-tech industries.
The two countries are already in a major tariff war with U.S. duties in place on 250-billion dollars worth of Chinese goods and Chinese duties on 110 billion dollars of U.S. goods.
The Chinese semiconductor maker,... which is opening a new five-point-seven billion dollar chip factory in Fujian province,... has been linked to the Trump administration's accusations that China has systematically stolen and forced the transfer of American technology.
U.S. Commerce Secretary Wilbur Ross said the U.S. believes the Chinese firm's new plant was likely the beneficiary of "U.S.-origin technology" and its additional production would threaten the long-term viability of U.S. chipmakers.
Lee Seung-jae, Arirang News.
Lee Seung-jae reports.
In an attempt to cut off a Chinese state-backed semiconductor maker from U.S. exports of components, software and technology goods,... the U.S. Commerce Department has placed trade restrictions on Fujian Jinhua Integrated Circuit,... adding it to a list of entities that cannot purchase such products from U.S. firms.
The Commerce Department cited a "significant risk" that the Chinese firm's new memory chip capacity will threaten the viability of U.S. suppliers of chips for military systems.
The restriction is similar to the Commerce Department's move that nearly put Chinese telecommunication equipment company ZTE Corp out of business earlier this year,.... after it was cut off from U.S. suppliers.
ZTE had violated a deal to settle violations of sanctions on North Korea and Iran,... but was allowed to resume purchases of U.S. products after a revised settlement and a one billion dollar fine.
Observers say the latest restriction against Fujian Jinhua is likely to spark new tensions between the two economic powerhouses,... since the company is at the heart of the "Made in China 2025" program to develop new high-tech industries.
The two countries are already in a major tariff war with U.S. duties in place on 250-billion dollars worth of Chinese goods and Chinese duties on 110 billion dollars of U.S. goods.
The Chinese semiconductor maker,... which is opening a new five-point-seven billion dollar chip factory in Fujian province,... has been linked to the Trump administration's accusations that China has systematically stolen and forced the transfer of American technology.
U.S. Commerce Secretary Wilbur Ross said the U.S. believes the Chinese firm's new plant was likely the beneficiary of "U.S.-origin technology" and its additional production would threaten the long-term viability of U.S. chipmakers.
Lee Seung-jae, Arirang News.