According to reports, Washington plans to add around 80 additional corporations and affiliates to the so-called entity list later in the day. The designation means that American suppliers will have to seek a special license from the Commerce Department before starting cooperation with the blacklisted firms.
Chinese largest chipmaker SMIC, as well as dozens of various Chinese companies, will be blacklisted by the US, Reuters reported on Friday, citing two sources. According to Washington, the said entities are linked to the Chinese military or are involved in alleged human rights violations.
Addressing the reports, Beijing said it will respond by taking any necessary measures to secure the legitimate interests of Chinese companies and urged Washington to stop an “unjustified crackdown” on them.
The US previously included around 275 China-based companies and their affiliates on the list, including Huawei, ZTE Corp, and surveillance camera maker Hikvision.
AP Photo / Susan WalshA view of the south side of the White House in Washington, Thursday, Dec. 5, 2019, decorated for Christmas. (AP Photo/Susan Walsh)
At the same time, SMIC was targeted by the Department of Defence, which mandated export licensing for the suppliers of the firm and effectively banned US investors from buying SMIC shares, accusing it of cooperating with the Chinese military, which SMIC has repeatedly denied.
Relations between Beijing and Washington have deteriorated over the last several years amid tariff wars and a crackdown on Chinese tech companies by the Trump administration. The US accused many of the firms of bypassing sanctions and backing Chinese intel activities in the west, while China says that Washington is trying to suppress foreign businesses by force.