Beijing: In yet another setback for China, the United States has enforced restriction on exports to Semiconductor Manufacturing International Corporation (SMIC), China’s maker of computer chips.
According to a report by South China Morning Post, the US Department of Commerce stated that the restriction were imposed citing the “unacceptable risk” its products posed if Chinese military make use of it.
China has spent more than USD 300 billion annually on imported chips in the last 2 years and depends highly on the US to import chips.
The U.S. has cut off China’s telecom giant Huawei from essential supplies of semiconductors since September 15. As the requirement takes effect, SMIC becomes the second leading Chinese technology company to face U.S. trade sanctions.