The Pentagon blocked China’s top oil and semiconductor maker

The Pentagon “blocks the door” of China’s leading oil and semiconductor maker

The US Department of Defense has just blacklisted four Chinese companies and accused them of being involved in the Chinese military.

Semiconductor manufacturing corporation SMIC and three other Chinese companies have just been blacklisted by the US Department of Defense. Photo: Shutterstock

CNBC TV channel quoted the US Department of Defense on the evening of December 3 that the agency has identified four businesses owned or controlled by the Chinese military, including: SMIC Semiconductor Manufacturing Corporation, General China Offshore Petroleum Company (CNOOC), China Construction Technology Company (CCTC), and China International Engineering Consulting Company (CIECC).

The move brought the total number of Chinese enterprises on the US blacklist to 35 units. The move could spark tensions between the two economic superpowers, increasing geopolitical problems facing US President-elect Joe Biden.

American officials have long criticized that Chinese businesses are “indebted” to the Chinese government and that on behalf of the Chinese military, collect sensitive information. Before that, the Chinese Communist Party has asserted not to engage in industrial intelligence activities.

In this regard, the Chinese Embassy in Washington did not immediately respond to CNBC’s questions.

In September, the Pentagon said the agency was discussing the inclusion of SMICs on the US Commerce Department’s blacklist, and should limit blacklisted firms from purchasing manufactured goods. Made in America.

Also in September, the US Department of Commerce announced that some US businesses must apply for permits from the authorities before providing goods and services to SMIC. The Department of Commerce’s announcement came after the agency concluded “there is an unacceptable risk” from the equipment supplied to SMICs because these devices could be used for military purposes. . In fact, SMIC has long relied heavily on US suppliers.

SMIC is identified as one of the enterprises playing an important role in China’s efforts to develop semiconductor industry. And China’s ambitions to develop the semiconductor industry have increased since the outbreak of the US-China trade war in mid-2018. The US imposition of controls on exports of goods and services to SMIC will greatly affect American firms sell chip-making technology to Chinese counterparts.

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