The US has blacklisted Chinese DJI and SMIC brands in a new move to fuel the trade war.
The US Department of Commerce has warned some Chinese companies to obtain licenses, despite the risk of US technologies being used by the Chinese government for military and surveillance purposes. Now, dozens of Chinese companies are prohibited from doing business with American companies and companies using American-made equipment. The US Bureau of Industry and Security announced that, with its new announcement, up to 60 new Chinese companies will be included in the blacklist (Entitiy List), including DJI v SMIC. This will limit the access of some hardware and software companies to key US technologies.
As you know, Biden management will take over on 20 January 2021. The Trump administration, on the other hand, made this move by maintaining its strict policies on China just before this process. The list now includes one of the world’s largest drone manufacturers, DJI. On the other hand is Semiconductor Manufacturing International Corporation (SMIC), China’s largest semiconductor company.
In summary, these two companies are subject to the same ban as Huawei. Therefore, both may be significantly affected by this situation and may have to give up some activities.
American consumers will now have more difficult access to DJI products as well as import duties. We can say that the issue of SMIC is much more comprehensive. This foundry is one of the most important names in China’s technological self-sufficiency. There are countless projects for Huawei’s server GPUs, desktop CPUs, 5G-capable SoCs and IoT devices.
The Chinese Foreign Ministry criticized this move and called on the United States to “stop unjust pressure on foreign companies”. They also stated that they will take the necessary measures to protect China’s rights.