The U.S. government’s Department of Commerce decided Friday to add dozens of companies with Communist Party military backgrounds, including China’s largest semiconductor company, Semiconductor Manufacturing International, to its list of entities. This is the latest countermeasure taken by the U.S. to curb Chinese companies from using U.S. technology to help the Chinese Communist Party’s liberation according to improve its military power.
A spokesman for the U.S. Department of Commerce said at a news conference on Friday (Dec. 18) that most of the companies included in the list of entities this time are Chinese companies. They are playing an increasingly important role in assisting the Communist Party’s military to improve its military capabilities.
The list of entities includes 77 companies and their affiliates, 60 of which are Chinese companies.
A Commerce Ministry spokesman said there is evidence that many Chinese companies are involved in the development and manufacture of missiles and ballistic missiles for the Communist Party’s military, helping it expand its militarization of the South China Sea. He said, “We cannot sit back and watch our adversaries use our technology to help the Chinese Communist military increase its military power.”
With SMIC on the entity list, it will be restricted in its purchases of certain U.S. technologies. It must require U.S. exporters to submit export license applications to the U.S. government. Any goods used to produce chips at or below 10 nanometers are unlikely to pass muster. The U.S. government will not in principle allow such advanced technology to be exported to SMIC and, through it, support the Communist Party’s civil-military integration program.
“We will not allow advanced U.S. technology to be used to help our increasingly aggressive adversaries develop their military forces,” U.S. Commerce Secretary Ross noted in a statement.
Ross said the relationship between SMIC and China’s military-industrial complex is “troubling.” SMIC “perfectly” demonstrates the risks posed by the Communist Party’s use of U.S. technology for military modernization.
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