The United States limits technology exports to a Chinese company for security reasons.
The United States limits technology exports to a Chinese company for security reasons.
The Trump administration imposed restrictions on technology exports to a Chinese state-supported semiconductor manufacturer, citing National security Land in the midst of a growing tariff battle.
The controls imposed on Monday at Fujian Jinhua Integrated Circuit Co. reflect concern that Chinese competition could cause US technology providers to stop operating, leaving the army without secure sources of components.
Beijing has spent a lot to build Jinhua and other chip makers as part of efforts to transform China in a world leader in robotics, artificial intelligence and other technology industries.
The United States, Europe and other trading partners say that Beijing's tactics violate its market opening obligations. US officials worry that they may erode US industrial leadership.
President Donald Trump has imposed tariffs of up to 25 percent to $ 250 billion of Chinese products in an effort to pressure Beijing to reverse those plans.
Jinhua is completing a "substantial production capacity" for integrated circuits, possibly using technology from the United States, which "threatens the long-term economic viability of US suppliers of these essential components of the military systems of the United States," he said. a statement from the Department of Commerce.
The company was added to the department's "List of Entities," which will require it to obtain an export license for all software, technology and basic products, the Commerce Department said. He said that such requests "will be reviewed with a presumption of denial."
That "will limit its ability to threaten the supply chain of essential components in our military systems," Commerce Secretary Wilbur Ross said in the statement.
The Chinese Foreign Ministry said it expected foreign governments to treat Chinese companies "in a reasonable and fair manner."
"We hope that the United States will do something that serves the interests of both sides and helps improve mutual trust, rather than the other way around," said a ministry spokesman, Lu Kang.
Calls to the offices of Fujian Jinhua did not respond on Tuesday and there was no immediate response to a query made through its website.
The order marks the second action this year in the United States that blocks technology exports to a Chinese buyer.
ZTE Corp., China's second largest telecommunications equipment maker, faced possible bankruptcy this year after Washington imposed a seven-year ban on sales of US technology to the company for its exports to Iran and North Korea.
US authorities lifted the ban in July after ZTE paid a $ 1 billion fine, agreed to replace its executive team and hired compliance officers selected by the United States.
Meanwhile, Jinhua is involved in a court battle against US chipmaker Micron Technology Inc., which accuses the Chinese company of stealing its technology.
Micron sued Jinhua in December in a federal court in California. Jinhua sued the US company the following month in a Chinese court and obtained an order blocking the sale of some Micron products.
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