On Monday, the U.S government led by Donald Trump has limited exports of technology to Chinese semiconductor maker, further raising the tension between US and China.
The restriction step was taken up by the Trump administration on Fujian Jinhua Integrated Circuit Co. might exhibit growing concern among Chinese competitors as they can divest American technology suppliers from business, resulting in military with no source of components.
In order to make China as one of the global manufacturer in artificial intelligence, robotics and other technology industries, the country pumped into heavy investment behind Jinhua and other makers.
According to Europe, United States and other partners, tactics undertaken by Beijing is likely to violate its opening obligations. It is foreseen by American officials that these might impair U.S. position in leadership.
Trump has imposed tariffs on Chinese goods worth US$250 bn. Trump slapped tariff rate of 25 % on these goods to coerce Beijing to atone those plans.
Commerce Department accused Jinhua of using U.S technology in a statement. The statement also said that this can actually hamper economic viability of U.S suppliers on long term basis. This is likely to threaten US military systems.
Soon after this Jinhua was put under the “Entitiy Listy” which restraint the company’s ability to hamper the supply chain required for U.S. military system.
This action taken up by U.S. is considered to be second of its kind. This action is likely to stop exports of technology to a Chinese buyer. Second biggest telecoms equipment maker in China, ZTE Corp., faced bankruptcy after Washington banned the sales of U.S. technology to the company due to its exports to North Korea and Iran this year.