The United States is considering adding China’s largest chipmaker to its blockchain as technology tensions rise

The United States is considering adding China's largest chipmaker to its blockchain as technology tensions rise

Integrated circuits on a circuit board. The semiconductor industry focused on the US-China trade war.

filonmar | E + | Getty Images

A Defense Department spokesman says the Trump administration is considering imposing export restrictions on China’s largest semiconductor manufacturer Semiconductor Manufacturing International Corporation.

The Department of Defense is debating whether to include SMIC in the corporate list of businesses, which prevents those companies from obtaining specific products made in the United States.

“The DOD is currently evaluating available information to determine whether SMIC’s activities should be included in the Department of Commerce’s corporate list,” a Department of Defense spokesman said. “Such action will ensure that all exports to SMIC are subjected to a more comprehensive review.”

Management’s action is part of a continuing effort to put pressure on China’s technology companies, which could mean a major escalation in the technological war between the United States and China.

SMIC is seen as a key player in China Attempt to boost its domestic semiconductor industry, An ambition accelerated by the US-China trade war. Imposing export restrictions on SMIC will affect US companies that sell chip-making technology to Chinese manufacturers.

Reuters reports that there are now more than 275 Chinese-based companies on the U.S. list of companies that could be added to the SMIC blockchain first.

U.S. officials recently announced that they would tighten controls In China’s Hawaii technologies in order to block the telecommunications company’s access to commercially available chips.

Hawaii prevents access to semiconductors without a special license. SMIC is one of the Hawaii manufacturers.

As tensions between the United States and China escalate, U.S. officials are urging other governments around the world to impose sanctions on Hawaii, arguing that the agency will provide spying data to the Chinese government. Hawaii has denied spying for China.

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The Trump administration last month issued executive orders banning transactions with Byte Dance, forcing the company to divert the US operations of the popular app Dictok.

– Lauren Finer of CNBC contributed to the reporting

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About the Author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

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