Seek permission before selling technology to Chinese semiconductor giant: US asks chip companies

The United States has ordered American companies to seek permission before selling their technologies to Chinese semiconductor giant SMIC, reported AFP quoting Wall Street Journal reported Saturday.

It is US’ latest salvo in the battle for technological dominance over Beijing. 

According to the report, the Department of Commerce “has ordered US computer-chip companies to obtain licenses before exporting certain technology to China’s largest manufacturer of semiconductors.” 

Also Read| US won’t back down from plan to ban TikTok, invites court showdown

The new rules were announced in a letter to the industry Friday, which says that “exports to Semiconductor Manufacturing International Corp. or its subsidiaries risk being used for Chinese military activities.” 

The newspaper said the administration of US President Donald Trump has “grown more concerned about Beijing’s practice of leaning on private companies to advance its military aims.”

The Commerce Department did not immediately respond to a request for comment by AFP.

The report comes as the White House says it will not back down from a plan to ban new US downloads of TikTok, the popular Chinese-owned video-sharing app, over what it says are national security concerns, setting up a court showdown ahead of a Sunday deadline.

SMIC is key to Beijing’s ambition to someday achieve semiconductor self-reliance. Analysts say China’s dependence on foreign — including US-made — chips hinders that national goal.