US restricts Chinese chip maker from buying American parts
The US is to curb American firms from exporting goods to a state-supported Chinese chip maker over national security concerns, in a move that is likely to exacerbate the brewing trade war tensions between Beijing and Washington, D.C.
In a statement this morning the US Commerce Department said Chinese company Fujian Jinhua would not be able to buy parts from American firms without a special license, over fears that it “poses a significant risk of becoming involved in activities that are contrary to the national security interests of the United States”.
"When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security," US Commerce Secretary Wilbur Ross said in a statement.
Ross added the ban will limit the company's ability to "threaten the supply chain for essential components in our military systems".
The remarks were made in the wake of recent reports alleged that the state-backed chip maker stole intellectual property from US company Micron Technology.
The news, which comes several months after the US said it would reinstate tough sanctions on China’s ZTE to punish the company for illegally shipping products to Iran and North Korea, follows on from campaign pledges made by President Donald Trump to halt alleged intellectual property theft.
US firms now require a licence to export to Fujian Jinhua.