Another Chinese semiconductor operator has been sanctioned by the US government, calling it a major risk.

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 Another Chinese semiconductor operator has been sanctioned by the US government, calling it a major risk.


Reference News Network reported on October 30 that the U.S. government has opened a new front in trade and technology disputes with China. Trumps government took action Wednesday to cut U.S. exports of parts, software and technology to a Chinese government-backed semiconductor manufacturer.

Fujian Jinhua Integrated Circuit Co., Ltd. has been placed on the list of entities that restrict the export of U.S. products, software and technology, the Commerce Department said, citing the companys ability to produce new memory chips as a threat to the viability of U.S. military system chip suppliers. The state constitutes a major risk.

Reported that the U. S. Department of Commerce in a statement that Fujian Jinhua involved in activities contrary to the national interests of the United States, constituting a major risk.

Reuters believes the move against Jinhua in Fujian could trigger new tensions between the United States and China, as the company is the core of Chinas manufacturing plans to develop high-tech industries.

According to the website of Fujian Jinhua Integrated Circuit Co., Ltd., the company is an advanced integrated circuit manufacturer jointly funded by Fujian Electronic Information Group, Jinjiang Energy Investment Group Co., Ltd. The company said that it has been integrated into Chinas 13th Five-Year integrated circuit major productivity layout plan.

Reported that the United States and China, two of the worlds largest economies, have launched a tariff war around trade disputes, the United States imposed tariffs on $250 billion worth of Chinese goods, China imposed retaliatory tariffs on $110 billion worth of American goods.

It is not clear what impact the US Commerce Departments action will have on the operation of Fujian Jinhua.

Reported that the US Commerce Secretary Ross pointed out in a statement that the Chinese companys new factory may benefit from technology originating in the United States, and that the companys increase in production will threaten the long-term viability of American chip manufacturers.

When foreign companies engage in activities contrary to our national security interests, we will take strong action to protect our national security. The inclusion of Jinhua in the entity list will limit its ability to threaten the supply chain of key components of our military system, Ross said.

Singapores Lianhe Zaobao reported on October 30 that under the Export Control Ordinance, all exports, re-exports and transfers of goods, software and technology to Jinhua are subject to licences. The Commerce Department said the assessment of such licensing applications would apply to refusal of presumption.

Derek Scissors, an expert on China at the American Enterprise Institute, pointed out that Jinhua is one of the potential national champions in Chinas semiconductor industry and is in dispute with its main competitor Meguiar Technologies.

He argued that although the decision was primarily beneficial to Meguiar in the short term, the Trump administrations intention was to set a long-term precedent for how to treat Chinese state-owned enterprises.

And the Japan Economic News report on October 30 pointed out that before this, the United States semiconductor company Meguiar Technology sued Jinhua IC infringement of its intellectual property rights. In the context of the increasingly fierce debate between China and the United States over the dominance of technology in the high-tech sector, it is estimated that this will become a new spark.

Reported that the U.S. Department of Commerce requires prior approval for the export of semiconductor manufacturing equipment and other U.S. products to Jinhua Integrated Circuits, and many people believe that the sale of products to Jinhua Integrated Circuits will become very difficult in fact. Regarding the reasons for the sanctions, the U.S. Department of Commerce pointed out that the use of technology originating in the United States to produce DRAM memory by Jinhua IC had an impact on the operations of American enterprises supplying semiconductors to U.S. military systems.

According to reports, the infringement of intellectual property rights around Jinhua integrated circuit has already started a court battle. Meguiar filed a lawsuit in California in 2017 against Taiwan semiconductor manufacturer UMC for stealing its corporate secrets and handing them over to Jinhua IC. On the one hand, Lianhua electronics also prosecuted Mei Guang in January 2018. In July, the Chinese court issued a temporary ban on Mei Guang to prohibit the sale of products in China. Russian satellite news agency also noted the incident on October 30, and pointed out that the U. S. Department of Commerce has placed Fujian Jinhua Company on the restricted list. Thus, the export, re-export and supply of the products, software and technology of the Chinese company by the United States can only be achieved by providing a U.S. license, and in general the application for a license will be rejected. Reported that the United States has earlier imposed sanctions on a series of Chinese telecommunications equipment manufacturers and restricted Chinese companies to sell telecommunications equipment in the United States. The United States has accused Chinese companies of stealing technology, dumping and secretly spying on userspersonal information in the name of the Chinese government. Although U.S. officials have not confirmed Chinese companies allegations of spying on usersinformation, media reports often mention it. This article source: Reference News Net editor: Wang Fengzhi _NT2541

According to reports, the infringement of intellectual property rights around Jinhua integrated circuit has already started a court battle. Meguiar filed a lawsuit in California in 2017 against Taiwan semiconductor manufacturer UMC for stealing its corporate secrets and handing them over to Jinhua IC. On the one hand, Lianhua electronics also prosecuted Mei Guang in January 2018. In July, the Chinese court issued a temporary ban on Mei Guang to prohibit the sale of products in China.

Russian satellite news agency also noted the incident on October 30, and pointed out that the U. S. Department of Commerce has placed Fujian Jinhua Company on the restricted list. Thus, the export, re-export and supply of the products, software and technology of the Chinese company by the United States can only be achieved by providing a U.S. license, and in general the application for a license will be rejected.

Reported that the United States has earlier imposed sanctions on a series of Chinese telecommunications equipment manufacturers and restricted Chinese companies to sell telecommunications equipment in the United States. The United States has accused Chinese companies of stealing technology, dumping and secretly spying on userspersonal information in the name of the Chinese government. Although U.S. officials have not confirmed Chinese companies allegations of spying on usersinformation, media reports often mention it.