The United States Department of Commerce has revised its Entity List for businesses (or people) that are deemed a threat to national security and has
added 77 new entities to the list. Among them are drone maker DJI and Chinese semiconductor giant Semiconductor Manufacturing International Corporation (SMIC). With their inclusion on the list, US companies are effectively banned from providing
(read: export, re-export, and transfer) their technology to DJI and SMIC owing to license restrictions imposed on the two companies under the Export Administration Regulations of BIS (Bureau of Industry and Security).
DJI is accused of enabling a humanitarian crisis
Starting with DJI, its inclusion on the Entity List has less to do with the national security risk, and is more about facilitating a human rights abuse. The latest “Addition, Revision and Removal of Entities from the Entity List” release mentions that DJI
Friday, 18 Dec 2020 07:48 PM MYT
A security officer stands outside a building of Semiconductor Manufacturing International Corporation (SMIC) during its grand opening in Shanghai November 22, 2001. Reuters pic
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WASHINGTON, Dec 18 The United States confirmed today it will add dozens of Chinese companies, including the country’s top chipmaker, SMIC, to a trade blacklist.
The move, which was first reported by Reuters, is seen as the latest in President Donald Trump’s efforts to cement his tough-on-China legacy. It comes just weeks before Democratic President-elect Joe Biden is set to take office on January 20.
Friday, December 18, 2020 The Bureau of Industry and Security (BIS) in the Department of Commerce (Commerce) added Semiconductor Manufacturing International Corporation (SMIC) of China to the Entity List. BIS is taking this action to protect U.S. national security. This action stems from China’s military-civil fusion (MCF) doctrine and evidence of activities between SMIC and entities of concern in the Chinese military industrial complex. “We will not allow advanced U.S. technology to help build the military of an increasingly belligerent adversary. Between SMIC’s relationships of concern with the military industrial complex, China’s aggressive application of military civil fusion mandates and state-directed subsidies, SMIC perfectly illustrates the risks of China’s leverage of U.S. technology to support its military modernization,” said Commerce Secretary Wilbur Ross.
US Department of Commerce Adds Semiconductor Manufacturing International Corporation of China to Entity List
Posted on 12/18/2020
The Bureau of Industry and Security (BIS) in the Department of Commerce (Commerce) added Semiconductor Manufacturing International Corporation (SMIC) of China to the Entity List. According to the press release, “BIS is taking this action to protect U.S. national security. This action stems from China’s military-civil fusion (MCF) doctrine and evidence of activities between SMIC and entities of concern in the Chinese military industrial complex.”
The press release adds, “The Entity List designation limits SMIC’s ability to acquire certain U.S. technology by requiring U.S. exporters to apply for a license to sell to the company. Items uniquely required to produce semiconductors at advanced technology nodes 10 nanometers or below will be subject to a presumption of denial to prevent such key enabling technology from supporting China’s military