US Adds Chinese Semiconductor SMIC and Drone Maker DJI to Blacklist

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The U.S. Department of Commerce has imposed sanctions by placing China's largest semiconductor foundry company SMIC and the world's largest drone manufacturer DJI Technology on the trade blacklist.

On the 18th (local time), the Department of Commerce and the State Department announced large-scale sanctions against Chinese companies related to human rights violations, South China Sea issues, and military modernization.

The Department of Commerce stated that the action against SMIC is "based on evidence of activities related to China's military-civil fusion policy and SMIC's connections with Chinese military industrial complex companies."

Commerce Secretary Wilbur Ross appeared on Fox News and said he would deny licenses to prevent SMIC from accessing semiconductor production technology below 10 nanometers (nm, one-millionth of a millimeter).

SMIC must obtain special permission from the U.S. Department of Commerce to import key components from U.S. suppliers. The Department of Commerce also required SMIC to acquire export licenses for supplying certain equipment last September.

The Department of Defense recently added SMIC and other companies owned or controlled by the Chinese military to the blacklist and restricted U.S. investors from purchasing shares of these companies starting November next year.

The Department of Commerce cited allegations of widespread human rights abuses in China through genetic data collection and analysis, and misuse of advanced surveillance technology as reasons for DJI's inclusion on the blacklist.

Several companies related to the Chinese military, including those that helped build and militarize artificial islands in the South China Sea, as well as companies involved in human rights violations, were also heavily sanctioned. Companies that acquired U.S.-made goods to support the People's Liberation Army programs and individuals and companies involved in stealing U.S. trade secrets were included.

This content was produced with the assistance of AI translation services.