US Blacklists DJI, SMIC Over Ties To Chinese Government

The US government has added a dozen Chinese companies including chipmaker Semiconductor Manufacturing International Corporation (SMIC) and drone company SZ DJI Technology Co Ltd to a trade blacklist.

The US Department of Commerce on Friday said that the action against SMIC stems from China's military-civil fusion (MCF) doctrine and evidence of activities between SMIC and entities of concern in the Chinese military industrial complex.

The "Entity List" designation limits SMIC's ability to acquire certain US technology by requiring US exporters to apply for a licence to sell to the company.

"We will not allow advanced US technology to help build the military of an increasingly belligerent adversary," US Commerce Secretary Wilbur Ross said in a statement.

"Entity List restrictions are a necessary measure to ensure that China, through its national champion SMIC, is not able to leverage US technologies to enable indigenous advanced technology levels to support its destabilising military activities," added Ross.

Items uniquely required to produce semiconductors at advanced technology nodes - 10 nanometers or below - will be subject to a presumption of denial.

The US Department of Commerce added more than 60 other entities to the Entity List for actions deemed contrary to the national security or foreign policy interest of the country.

The ban on drone manufacturer DJI was also aimed at restricting export of advanced US technology.

The ban was put in place through the same mechanism as the US government's ongoing restrictions on Chinese tech giant Huawei's products, The Verge reported.