U.S. Blocks Tech Exports from Chinese Firm Over Security Concerns

Washington restricts U.S. companies working with Fujian Jinhua citing national security interests.

• By Sydny Shepard
• Oct 31, 2018

The Trump Administration has decided to impose restrictions on technology exports from a state-sponsored Chinese semiconductor makers, citing national security grounds amid a mounting tariff battle, according to the Associated Press. 

The restrictions, imposed this past Monday against Fujian Jinhua Integrated Circuit Co., reflect the concern of the Trump Administration that Chinese competition could drive American technology suppliers out of business, leaving the military without secure sources of components. 

The company was added to the Commerce Department's "Entity List," which will require it to obtain an export license for all software, technology and commodities. The department said Jinhua is completing "substantial production capacity" for integrated circuits, possibly using U.S. technology, which "threatens the long-term economic viability of U.S. suppliers of these essential components of U.S. military systems." 

U.S. officials are demanding that China abandon practices such as forced technology transferred the theft of intellectual property in exchange for lifting $250 obn of Chinese imports that were levied earlier this year.

"When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security," Wilbur Ross, the U.S. Commerce Secretary said.