U.S. officials are considering a Department of Defense proposal this month to close regulatory flaws that would allow Chinese chipmaker SMIC to buy critical U.S. technology, the Wall Street Journal reported Thursday.
Some Commerce Department officials are trying to block the Defense Department’s proposal, citing people familiar with the matter, the journal added.
Semiconductor Manufacturing International Corporation (SMIC) was added to a U.S. blacklist last year that denied access to advanced manufacturing equipment from U.S. suppliers because of its alleged ties to China’s military, claiming the company had refused.
SMIC, China’s largest contract chipmaker, did not immediately respond to a request for comment.
In the coming months, U.S. officials are also considering adding more Chinese technology companies to the Commerce Department’s entity list and the U.S. Investment Prohibition Treasury list, the journal added.
On Wednesday, the U.S. House of Representatives passed legislation to ban imports from China’s Xinjiang region over concerns about forced labor.
Thomson Reuters 2021
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